TCREUR_Public/061220.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, December 20, 2006, Vol. 7, No. 252


                            Headlines


A U S T R I A

GT TELEKOMMUNICATIONS: Creditors' Meeting Slated for Jan. 10
LTZ - BAUSERVICE: Claims Registration Period Ends Jan. 2
M. S. BACKEREI: Creditors' Meeting Slated for Jan. 17
MDM HOLDING: Sergey Popov Acquires 90% Shareholding in MDM Bank
MDM HOLDING: Fitch Affirms Short-Term Rating at B

TYROMAR WARENHANDEL: Creditors' Meeting Slated for Dec. 22


B E L G I U M

CREDIT PROFESSIONNEL: Fitch Affirms Individual Ratings at C/D


C Y P R U S

RUSSIAN COMM'L: Fitch Affirms & Withdraws D/E Individual Rating


C Z E C H   R E P U B L I C

ANDREW CORP: Posts US$34.2 Million Net Loss in FY Ended Sept. 30
VALEANT PHARMA: Moody's Cuts Rating to B2 Over Default Notice


D E N M A R K

SITEL CORPORATION: Earns US$7.4 Million in 2006 Second Quarter


F I N L A N D

METSO OYJ: Injects EUR15 Million to Raise Paper Unit's Capacity


F R A N C E

ALCATEL-LUCENT: Soliciting Consents to Amend Sr. Note Indenture
ALCATEL-LUCENT: Inks IP Network Contract with Hawaiian Telcom
EUROTUNNEL GROUP: French Court Sets Jan. 15 Plan Hearing
KB HOME: Planned Restatement Prompts Moody's Ratings Review
TK ALUMINUM: Posts EUR22-Mln 3Q Loss; May Breach Bond Covenant

TK ALUMINUM: S&P Cuts Rating to CCC- on Possible Covenant Breach
VALEANT PHARMA: Moody's Cuts Rating to B2 Over Default Notice
VTB BANK FRANCE: Fitch Affirms Individual Rating at C/D


G E O R G I A

METROMEDIA INT'L: Files 2004 Annual Report with U.S. SEC


G E R M A N Y

ABR FORMENBAU: Creditors Must File Claims by Dec. 27
ALT HEDDERNHEIMER: Registration of Claims Ends Dec. 27
ANTHRACITE EURO: Moody's Rates EUR25-Mln Class E Notes at Ba2
ARBEITSGEMEINSCHAFT FRANKFURTER: Claims Bar Date Set at Dec. 27
ASAT HOLDINGS: Weak Liquidity Prompts S&P's Junk Ratings

BOLAT DIENSTLEISTUNGEN: Creditors Must File Claims by Dec. 27
DAIMLERCHRYSLER: Unit Ordered to Pay US$350MM in U.S. Fraud Case
DAS SITZT: Deadline for Submission of Claims Set Dec 27
DOMUS SULTAN: Credit Must Register Claims by Dec. 23
E-MAC DE 2006-II: Fitch Rates EUR3.5-Mln Class F Notes at BB+

EGO ELEKTRO: Claims Filing Period Ends December 27
GELDILUX-TS-2005: Fitch Affirms Low-B Ratings on 6 Note Classes
HTE UNTERNEHMENSGRUPPE: Claims Registration Ends Dec. 27
IKB PROMISE-I: Moody's Assigns Ba1 Rating on Class E Notes
PS-LEASING GMBH: Creditors Must Register Claims by Dec. 27

QUELLENTHERME SERVICE: Claims Registration Ends Dec. 27
RAHE BAUTEC: Creditors Must File Claims by Dec. 27
SHOPPING-SERVICES 4 U: Claims Registration Ends Dec. 27
TUI AG: Eyes 3,600 Job Cuts at Tourism Division


G R E E C E

YIOULA GLASSWORKS: Moody's Affirms B3 Rating on EUR140-Mln Notes


H U N G A R Y

ACTUANT CORP: Earns US$25.2 Million in 2006 Fourth Quarter


I R E L A N D

AFFILIATED COMPUTER: Identifies US$51MM Addt'l. Non-Cash Expense
ELAN CORP: Applies for TYSABRI's Supplemental License with FDA


I T A L Y

METSO OYJ: Injects EUR15 Million to Raise Paper Unit's Capacity
TK ALUMINUM: Posts EUR22-Mln 3Q Loss; May Breach Bond Covenant
TK ALUMINUM: S&P Cuts Rating to CCC- on Possible Covenant Breach


K A Z A K H S T A N

ALEXANDRIT HOLDING: Claims Filing Period Ends Jan. 24, 2007
ALTAISERVICECENTRE LLP: Court Commences Bankruptcy Proceedings
BAIMURAT LLP: Kostanai Court Declares Firm Insolvent
CINEMA INVEST: Claims Filing Period Ends Jan. 26, 2007
MURAGER LLP: Claims Filing Period Ends Jan. 26, 2007

NEWS-PRINT LLP: Claims Filing Period Ends Jan. 24, 2007
NITS INCOMSYSTEM: Creditors Must File Claims by Jan. 24, 2007
PRINCIP LLP: East Kazakhstan Court Starts Bankruptcy Proceedings
STROY-SUPPLY-PLUS 777: Court Starts Bankruptcy Procedure


K Y R G Y Z S T A N

KYRGYZ SHAMPANY-KAMEKS: Creditors Meeting Slated for Dec. 25
TECHNOLOGY ELECTRONIC: Claims Registration Ends Jan. 5, 2007


L U X E M B O U R G

GELDILUX-TS-2005: Fitch Affirms Low-B Ratings on 6 Note Classes
NORTEL NETWORKS: Amends US$750 Million Master Facility Agreement


N E T H E R L A N D S

ALCATEL-LUCENT: Soliciting Consents to Amend Sr. Note Indenture
ALCATEL-LUCENT: Inks IP Network Contract with Hawaiian Telcom


P O L A N D

AFFILIATED COMPUTER: Identifies US$51MM Addt'l. Non-Cash Expense
EUROGAS INC: Sept. 30 Balance Sheet Upside-Down by US$41.1 Mln


P O R T U G A L

COMPANHIA SIDERURGICA: U.K. Regulator May Auction Corus in 2007


R U S S I A

ALFA LLC: Perm Court Names A. Osmekhin as Insolvency Manager
BRATSKOYE FREIGHT: Court Names S. Galandin as Insolvency Manager
CHAINSKOYE CJSC: Court Names Ya. Gomerov as Insolvency Manager
LUKOIL OAO: ConocoPhillips to Hike Stake to 20%
MDM BANK: Sergey Popov Acquires 90% Shareholding

MDM BANK: Fitch Affirms Sr. Unsec. Debt at BB- with Pos. Outlook
METROMEDIA INT'L: Files 2004 Annual Report with U.S. SEC
MOTORIST OJSC: Rostov Bankruptcy Hearing Slated for Feb. 6
NORTH-METAL CJSC: Court Names S. Kovalev as Insolvency Manager
NOVOCHERKASSKIY LIQUEUR-VODKA: Court Hearing Slated for March 5

ORLOVSKOYE OJSC: Court Names V. Volgin as Insolvency Manager
POSEVNINSKAYA LLC: Bankruptcy Hearing Slated for January 15
SEL-KHOZ-TEKHNIKA OJSC: Court Starts Bankruptcy Supervision
SERDOBSKIY BRICKWORKS: Court Names A. Makarov to Manage Assets
SEVERSTAL OAO: Gains RUR24.8 Billion from New Share Issue

SEVERSTAL OAO: Appoints Five Non-Executive Directors to Board
SLAVINVESTBANK LLC: Fitch Rates US$100-Million Notes at B-
VNESHTORGBANK JSC: Eyes US$4.6 Billion Fresh Capital in 2007 IPO
VNESHTORGBANK JSC: Fitch Affirms Individual Rating at C/D
VNESHTORGBANK JSC: Inks Syndicated Factoring Project with NFC

VODOPYANOVSKOYE OJSC: Bankruptcy Hearing Slated for March 15
WEST-URAL CRANE FACTORY: Bankruptcy Hearing Slated for March 19
WOODWORKING FACTORY CJSC: Tomsk Court Names Insolvency Manager
WOODWORKING FACTORY OJSC: Court Taps S. Chashin to Manage Assets


S P A I N

MADRID RMBS II: Fitch Rates EUR18.9 Million Class E Notes at BB+


S W I T Z E R L A N D

BALLFIRE LLC: St. Gallen Court Starts Bankruptcy Proceedings
BDS FINANCE-SERVICES: Zug Court Closes Bankruptcy Proceedings
CW CARAVAN: Berne Court Starts Bankruptcy Proceedings
DHMN JSC: Thurgau Court Suspends Bankruptcy Proceedings
DREILINDEN LANGENTHAL: Berne Court Starts Bankruptcy Proceedings

LANNA GASTRO: Thurgau Court Starts Bankruptcy Proceedings
POLYTECH SUISSE: Berne Court Starts Bankruptcy Proceedings
TECH DATA: Moody's Rates Proposed US$350-Mln Sr. Notes at Ba2
THEILER SIRNACH: Thurgau Court Suspends Bankruptcy Proceedings
TSCHANZ KUCHEN: St. Gallen Court Closes Bankruptcy Proceedings

UNTERSEE AUKTIONEN: Court Suspends Bankruptcy Proceedings
VERAGUTH-MOTOS LLC: Court Suspends Bankruptcy Proceedings


T U R K E Y

HABAS SINAI: Low Leverage Prompts Fitch to Affirm B+ Ratings
VESTEL ELEKTRONIK: Sound Posture Cues Fitch to Affirm BB- Rating


U K R A I N E

INDUSTRIALBANK: Fitch Lifts Junk Issuer Default Rating to B-
UKRSIBBANK JSCIB: Fitch Assigns BB- Rating to US$500-Mln Notes
VNESHTORGBANK JSC: Eyes US$4.6 Billion Fresh Capital in 2007 IPO
VNESHTORGBANK JSC: Fitch Affirms Individual Rating at C/D
VNESHTORGBANK JSC: Inks Syndicated Factoring Project with NFC


U N I T E D   K I N G D O M

1ST CALL: Appoints T. Papanicola to Liquidate Assets
ACTUANT CORP: Earns US$25.2 Million in 2006 Fourth Quarter
ANTHRACITE EURO: Moody's Rates EUR25-Mln Class E Notes at Ba2
BH FURNISHERS: Names Michael C. Klenlen Liquidator
BLOCKBUSTER INC: S&P Holds Ratings & Revises Outlook to Stable

BURNGREAVE COMMUNITY: Creditors Confirm Liquidator's Appointment
COLLINS & AIKMAN: Excl. Plan-Filing Period Intact Until Jan. 12
COLLINS & AIKMAN: Seeks Plan Framework with Customers & JPMorgan
CORUS GROUP: Auction Looms If Buyer Remains Unnamed by Jan. 31
CORUS GROUP: Adjourns Meetings Following Regulator's Ultimatum

EUROTUNNEL GROUP: French Court Sets Jan. 15 Plan Hearing
GEO GROUP: Modifies Financing Plan for CentraCore Purchase
REFCO INC: Plan Satisfies 13 Steps for Confirmation, Court Rules
SEVERSTAL OAO: Gains RUR24.8 Billion from New Share Issue
SEVERSTAL OAO: Appoints Five Non-Executive Directors to Board

SITEL CORPORATION: Earns US$7.4 Million in 2006 Second Quarter
TRIPLE BLACK: Brings In Joint Liquidators from Ashcrofts
UMANO JEWELLERY: Taps Liquidator from BN Jackson Norton
VTB EUROPE: Fitch Affirms Individual Rating at C

* Fitch Says European Car Makers Better Positioned than US Peers

                            *********

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A U S T R I A
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GT TELEKOMMUNICATIONS: Creditors' Meeting Slated for Jan. 10
------------------------------------------------------------
Creditors owed money by LLC GT Telekommunications (FN 245522m)
are encouraged to attend the creditors' meeting at 9:45 a.m. on
Jan. 10, 2007, to consider the adoption of the rule by revision
and accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1606
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Nov. 2 (Bankr. Case No. 4 S 158/06x).  Susanne Fruhstorfer
serves as the court-appointed property manager of the bankrupt
estate.  Michael Gunther represents Dr. Fruhstorfer in the
bankruptcy proceedings

The property manager can be reached at:

         Susanne Fruhstorfer
         Seilerstatte 17
         1010 Vienna, Austria
         Tel: 512 57 76 13
         Fax: 512 57 76 50
         E-Mail: office@fg-lawyers.at


LTZ - BAUSERVICE: Claims Registration Period Ends Jan. 2
--------------------------------------------------------
Creditors owed money by LLC LTZ-Bauservice (FN 258082h) have
until Jan. 2, 2007, to file written proofs of claims to court-
appointed property manager Georg Buder at:

         Dr. Georg Buder
         Bethlehemstrasse 3
         4020 Linz, Austria
         Tel: 0732/771877
         Fax: 0732/77187718
         E-Mail: moerth.buder@utanet.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 p.m. on Jan. 15 to consider the
adoption of the rule by revision and accountability.

The meeting of creditors will be held at:

         The Land Court of Steyr
         Hall 7
         2nd Floor
         Steyr, Austria

Headquartered in Linz, Austria, the Debtor declared bankruptcy
on Oct. 24 (Bankr. Case No. 12 S 91/06d).  Walther Morth
represents Dr. Buder in the bankruptcy proceedings.


M. S. BACKEREI: Creditors' Meeting Slated for Jan. 17
-----------------------------------------------------
Creditors owed money by LLC M.S. Backerei- und Konditorei
(FN 237643a) are encouraged to attend the creditors' meeting at
9:30 a.m. on Jan. 17 to consider the adoption of the rule by
revision and accountability.

The creditors' meeting will be held at:

         The Trade Court of Vienna
         Room 1705
         Vienna, Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Aug. 31 (Bankr. Case No. 3 S 121/06y).  Herbert Hochegger
serves as the court-appointed property manager of the bankrupt
estate.  Bernhard Eder represents Dr. Hochegger in the
bankruptcy proceedings.

The property manager can be reached at:

         Dr. Herbert Hochegger
         Brucknerstrasse 4/5
         1040 Vienna, Austria
         Tel: 505 78 61
         Fax: 505 78 519
         E-Mail: office@hoch.co.at


MDM HOLDING: Sergey Popov Acquires 90% Shareholding in MDM Bank
---------------------------------------------------------------
MDM Bank disclosed of an agreement reached by its owners whereby
Sergey Popov becomes the main investor in MDM Bank.  He will own
a 90% share in the Bank.

Martin Andersson, member of MDM Bank's strategy committee, will
acquire a 10% stake.  Andrey Melnichenko, who has been a 50-50
owner of the Bank together with Mr. Popov, will discontinue his
ownership in the Bank as part of a wider re-organization of his
interests with Mr. Popov.  This reorganization is subject to all
relevant regulatory approvals.

Mr. Popov has been one of MDM Bank's investors since 2003.  As a
member of MDM Bank's Board of Directors he was one of the
architects of the Bank's strategy and of the development of its
corporate governance system.  Currently Mr. Popov sits on the
Boards of MDM Bank, Russia's largest coal company, SUEK, and a
leading agrochemical company, EuroChem.

Mr. Andersson, a member of the Bank's Strategy committee since
the first half of 2006, is a founding partner of the Brunswick
Group. He was CEO and Chairman of Brunswick UBS Warburg, a
leading Russian investment bank.

                           About MDM

Headquartered in Moscow, Russia, OJSC MDM Bank --
http://www.mdmbank.com/-- provides financial services organized  
across four divisions: corporate banking, retail banking, and
investment banking.  The bank owns and operates 100 offices
throughout Russia.


MDM HOLDING: Fitch Affirms Short-Term Rating at B
-------------------------------------------------
Fitch Ratings affirmed Russia-based MDM Bank's and its ultimate
parent, MDM Holding GmbH's:

   * MDM Bank:

      -- Issuer Default rating and foreign currency senior
         unsecured debt: affirmed at 'BB-' (BB minus); IDR
         Outlook Positive.

      -- Subordinated debt: affirmed at 'B+'.

      -- National Long-term rating and RUB senior unsecured
         debt: affirmed at 'A+(rus)'; Long-term rating Outlook
         Positive.

      -- Short-term rating affirmed at 'B'.

      -- Individual rating: affirmed at 'C/D'.

      -- Support rating: affirmed at '4'.

   * MDM Holding GmbH:

      -- IDR: affirmed at 'BB-' (BB minus); Outlook Positive.

      -- Short-term rating: affirmed at 'B'.

      -- Individual rating: affirmed at 'C/D'.

      -- Support rating: affirmed at '5'.

The affirmation follows the announcement of an agreement reached
by MDM Bank's owners whereby Sergey Popov becomes the main
investor in MDM Bank.  He will own a 90% share in the Bank.  
Martin Andersson, member of MDM Bank's strategy committee, will
acquire a 10% stake.  Andrey Melnichenko, who has been a 50-50
owner of the Bank together with Mr. Popov, will discontinue his
ownership in the Bank as part of a wider re-organization of his
interests with Mr. Popov.  This reorganization is subject to all
relevant regulatory approvals.

Fitch says that corporate governance improvements at MDM Bank,
which have included the gradual withdrawal from the bank's day-
to-day management by Mr. Melnichenko, the creation of
appropriate committee structures and the formation of an
experienced executive team under CEO Mr. Michel Perhirin, should
ensure minimal disruption to the bank's business.  Mr.
Melnichenko is to remain a member of MDM Bank's Board of
Directors at present.

Fitch understands that MDM Bank's strategy to push more
comprehensively into the middle-market retail and SME segments,
including in the Russian regions, will not be affected by the
ownership change.  The change in ownership has been structured
largely as an asset swap between the two parties and Fitch has
been assured that no leverage is required to effect the
transaction.

MDM Bank relies very heavily on wholesale sources of funds.  
Fitch considers that the change in ownership should not
materially affect MDM Bank's access to funding, nor its funding
costs.  However, it is difficult to predict the intentions of
the numerous interested parties and it is an area that Fitch
will monitor closely.

MDM Bank is by far the largest subsidiary of MDM Holding GmbH
and is Russia's 10th largest bank by assets.  MDM Holding GmbH
had consolidated assets of RUB210 billion and consolidated
equity of RUB29bn at end-September 2006.  Operating return on
average equity was 19.5% for first nine months of 2006, a little
lower than the 22% achieved in first nine months of 2005, a
period that benefited from exceptionally low impairment charges
and high trading gains.


TYROMAR WARENHANDEL: Creditors' Meeting Slated for Dec. 22
----------------------------------------------------------
Creditors owed money by LLC Tyromar Warenhandel (FN 43612k) are
encouraged to attend the creditors' meeting at 9:15 a.m. on
Dec. 22 to consider the adoption of the rule by revision and
accountability.

The creditors' meeting will be held at:

         Land Court of Innsbruck
         Conference Hall N214
         2nd Floor
         Innsbruck, Maximilanstrasse
         Austria

Headquartered in Innsbruck, Austria, the Debtor declared
bankruptcy on Oct. 30 (Bankr. Case No. 9 S 27/06d).  Stefan
Geiler serves as the court-appointed property manager of the
bankrupt estate.  

The property manager can be reached at:

         Dr. Stefan Geiler
         Maria-Theresien-Strasse 17-19
         6020 Innsbruck, Austria
         Tel: 0512/58 27 60
         Fax: 0512/5827606
         E-Mail: office@ullmann-geiler.at


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B E L G I U M
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CREDIT PROFESSIONNEL: Fitch Affirms Individual Ratings at C/D
-------------------------------------------------------------
Fitch Ratings affirmed Credit Professionnel's ratings at Issuer
Default 'A+', Short-term 'F1', Individual 'C/D' and Support '1'.
The Outlook is Stable.

The Issuer Default, Short-term and Support ratings of CP are
based on the extremely high probability of support it could
receive from its 100% shareholder, Credit Mutuel Nord Europe
group, in case of need.

CMNE's stake in CP is held by its issuing vehicle, Caisse
Federale du Credit Mutuel Nord Europe (rated 'F1'/'A+').  Thus,
CP's Issuer Default rating is equalised with that of its parent.  
CMNE has stated its willingness to ensure that CP meet its
obligations and has provided unlimited, albeit unconfirmed,
funding lines to CP.  Moreover, expansion into Belgium is a key
part of CMNE's strategy, allowing it to expand into a
neighbouring region.  CMNE can sell products developed in France
and adapted to the Belgian market through the eight regional
banks of the CP network.  

Following a reorganization in 2006, CP now has majority control
over four regional banks, three of which were previously held
directly by CMNE.  The other four regional banks are owned by
their customers.

CP's Individual rating reflects its small size, improved
operating profitability, good asset quality and sound
capitalization.  CP has completed the restructuring it has been
undergoing over the past six years, which included staff
reduction, overhaul of IT systems and new definitions of
management duties.  Thus, it continued to record higher
operating profit and an improved cost/income ratio in 2005.  
Initially, the consolidation of four regional banks in 2006 will
have a negative impact on CP's cost/income ratio owing to the
high cost base of these regional banks.  Accordingly, CP will
once again enter a restructuring phase to reduce operating
expenses, although this time related to the regional banks.  
Moreover, the regional banks will continue to work on increasing
business with and revenue from clients.  Thus, over time the
CP's consolidated operating profit and cost/income ratio should
improve.

CP is the central banking organization for the eight regional
banks of the CP network and provides services to these banks.  
Their clientele is primarily composed of self-employed
individuals and small businesses.  CMNE is a member of the
French Credit Mutuel banking group.  The CM group is the fourth
largest banking group in France and consists of several regional
federations, including CMNE.


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C Y P R U S
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RUSSIAN COMM'L: Fitch Affirms & Withdraws D/E Individual Rating
---------------------------------------------------------------
Fitch Ratings affirmed the ratings of Russia-based JSC
Vneshtorgbank and its London-, Paris- and Cyprus-based
subsidiaries, respectively VTB Europe plc, VTB Bank France SA.
and Russian Commercial Bank (Cyprus), at:

   * JSC Vneshtorgbank:

      -- Foreign currency Issuer Default rating: 'BBB+',
         Short-term foreign currency 'F2', Individual 'C/D',
         Support '2', National Long-term 'AAA(rus)', Local
         currency IDR 'BBB+'.

         The Outlooks on the bank's IDRs and National Long-term
         rating are Stable.

         VTB's IDRs, Short-term and Support ratings are
         underpinned by its majority state ownership, importance
         to the Russian banking system, and Fitch's view of the
         high probability of support from the Russian state in
         case of need.  However, the bank's support floor
         continues to depend on its status, ownership and
         importance to the Russian banking system.  Upside
         potential for the Individual rating is currently
         limited given VTB's exposure to political risk,
         pressured capitalization, transparency issues
         surrounding the bank's largest credit exposures and
         increasing operational and credit risks.

   * VTB Europe plc:

      -- Foreign currency IDR 'BBB', Short-term foreign
         currency, 'F3', Individual 'C' and Support '2'.  

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         In light of VTBE's 89%-owner, VTB, which is Russia's
         second largest, state-owned bank, as well as the
         comfort letter Fitch understands that VTB has provided
         to the UK's Financial Services Authority in respect of
         VTBE (which although not legally binding provides a
         strong moral obligation to support VTBE), there is a
         high probability that support for VTBE would be
         forthcoming from VTB, if needed, flowing ultimately
         from the Russian state.  Fitch does not expect an
         upgrade of VTBE's Individual rating in the near future.
         Downward movement could result from failure to offset
         revenue pressures, a decline in asset quality or an
         increase in risk appetite.

   * VTB Bank France SA.:

      -- Foreign currency IDR 'BBB', Short-term foreign currency
         'F3', Individual 'C/D' and Support '2'.

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         The Issuer Default, Short-term and Support ratings of
         VTBF reflect Fitch's view of the high probability of
         support from VTB, if needed, flowing ultimately from
         the Russian government.  This is based on VTBF's 87%-
         ownerhip by VTB, as well as the assurances provided by
         VTB to the French authorities in respect of VTBF's
         solvency and by the Central Bank of Russia (VTBF's
         former majority owner) in respect of VTBF's liquidity
         (up until end-2007).  Fitch does not expect an upgrade
         of VTBF's Individual rating in the near future.  
         However, downward movement could result from failure to
         offset revenue pressures or should VTB channel upstream
         a large amount of capital from VTBF.

   * Russian Commercial Bank (Cyprus):

         Foreign currency IDR 'BBB', Short-term foreign currency
         'F3' and Support '2'.  The Outlook on the bank's IDR is
         Stable mirroring that assigned to VTB's IDR.  RCBC's
         Individual rating of 'D/E' is affirmed and withdrawn.
         
         RCBC's ratings reflect the high probability of support
         being forthcoming from its 100% shareholder, VTB, in
         case of need.  Under the terms of RCBC's banking
         license granted by the Cypriot authorities, its
         obligations are guaranteed by VTB in the case of RCBC
         being wound up.  However, in light of possible
         timeliness issues relating to enforcement of the
         guarantee, and also its cross-border nature, Fitch
         maintains a one-notch differential between the ratings
         of VTB and RCBC.  The withdrawal of RCBC's Individual
         rating reflects the extent of integration between RCBC
         and its parent, which makes an analysis of RCBC on a
         standalone basis difficult.  Fitch is informed that
         RCBC will remain a direct subsidiary of VTB for the
         foreseeable future, notwithstanding the ongoing
         restructuring of VTB's western European subsidiaries.

Founded in 1990, VTB is Russia's second-largest bank by assets
and equity.  Historically a corporate bank, it is also
aggressively expanding its domestic small and mid-sized
enterprise and retail banking operations.  VTB's strategy is to
become a mid-sized European bank.  Following a number of
acquisitions, VTB group comprises three major Russian banks,
seven banks in Western Europe, including VTBE and VTBF (both
acquired at end-2005) and RCBC, and four banks in CIS countries.  
It also has offices in Africa and plans to open new offices in
Asia.


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C Z E C H   R E P U B L I C
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ANDREW CORP: Posts US$34.2 Million Net Loss in FY Ended Sept. 30
----------------------------------------------------------------
Andrew Corp. reported a US$34.2 million net loss for the fiscal
year ended Sept. 30, 2006, compared with net income of US$38.8
million for fiscal 2005.  The loss is primarily due to the US$79
million increase in income tax expense as a result of the
recording of a valuation allowance on its U.S. deferred tax
assets.

Sales for fiscal 2006 of US$2.1 billion increased from US$1.9
billion fiscal 2005.  The sales increase resulted from higher
sales in Antenna and Cable Products and Base Station Subsystems
offset by an expected sales decline in Network Solutions.

The company's top 25 customers accounted for 69% of sales in
fiscal 2006, 2005, and 2004.  In fiscal 2006 and 2005, major
OEMs accounted for 39% of sales.  No single customer accounted
for more than 10% of sales in fiscal 2006.  In fiscal 2005,
Cingular Wireless accounted for 11% of total sales.

Gross profit margins decreased slightly from 22.3% in fiscal
2005 to 22.1% in fiscal 2006 due primarily to higher commodity
costs, especially copper, and the expected decrease in Network
Solutions margin contribution resulting from the completion of
U.S. E-911 upgrade installations.

Operating expenses were US$390 million in fiscal 2006, or 18.2%
of sales, compared with US$359 million in fiscal 2005, or 18.3%
of sales.  Operating expenses increased US$30.8 million compared
with fiscal 2005 due primarily to higher sales and
administrative costs, which increased from 11.4% of sales in
fiscal 2005 to 11.9% of sales in fiscal 2006.  Research and
development expenses increased US$5.1 million in fiscal 2006
versus fiscal 2005, but decreased as a percentage of sales from
5.5% in fiscal 2005 to 5.3% in fiscal 2006.

                 Sales by Major Geographic Region

Sales in the Americas increased 6% in fiscal 2006 compared to
fiscal 2005 due to strong growth in antenna and cable products,
power amplifiers and filter sales which were offset by sales
decreases in geolocation equipment and satellite products.

Europe, Middle East, and Africa sales increased 8% in fiscal
2006 compared to fiscal 2005 due to strong Antenna and Cable
Group sales, primarily resulting from the acquisition of
Precision Antenna Ltd., offset by lower Base Station Subsystems
Group sales.

Asia Pacific sales increased 28% in fiscal 2006 compared to
fiscal 2005 due to increased Antenna and Cable Group sales,
primarily in India, Indonesia, and China.  With the anticipated
issuance of 3G licenses in fiscal 2006, Chinese operators slowed
their investment in wireless infrastructure in fiscal 2005.

                          Gross Profit

Gross profit as a percentage of sales was 22.1% in fiscal 2006
and 22.3% in fiscal 2005.  Two of the more significant factors
driving the margin decrease were the company's changing product
mix and increased commodity costs.  Over the last three years,
Andrew's gross profit percentages have changed as its product
offering has evolved from primarily passive components to
complete system solutions, including more active electronic
components.

Additionally, higher margin geo-location sales have decreased
over the past three years as U.S. service providers have
implemented and completed E-911 upgrade installations.  In
fiscal 2006, the company used approximately 70 million pounds of
copper.  The company's average cost per pound of copper
increased by approximately US$0.45 throughout fiscal 2006,
resulting in an increase in cost of products sold of
approximately US$32 million or 1.5% of sales.  In addition, in
fiscal 2005, product recall costs associated with one of the
company's Base Station Subsystem products resulted in a charge
of US$17 million or 0.8% of sales.

                  Liquidity and Capital Resources

In fiscal 2006 the company had cash flow from operations of
US$91.8 million.  Cash and cash equivalents were
US$169.6 million at Sept. 30, 2006, a decrease of
US$19.2 million from Sept. 30, 2005. Working capital was US$585
million at Sept. 30, 2006, compared with US$639 million at Sept.
30, 2005.

The company's balance sheet at Sept. 30, 2006, showed total
assets of US$2.4 billion, total liabilities of US$900 million,
and total shareholders' equity of US$1.5 billion.

A full text-copy of the company's annual report on Form 10-K may
be viewed at no charge at http://ResearchArchives.com/t/s?1729

Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ:ANDW) -- http://www.andrew.com/-- designs, manufactures  
and delivers equipment and solutions for the global
communications infrastructure market.  The company serves
operators and original equipment manufacturers from facilities
in 35 countries including Italy and Czech Republic, among
others.

                          *     *     *

As reported in the Troubled Company Reporter, Standard & Poor's
Ratings Services revised its CreditWatch implications on Andrew
Corp. to negative from developing.  The 'BB' corporate credit
rating and other ratings on the company were placed on
CreditWatch developing on Aug. 7.


VALEANT PHARMA: Moody's Cuts Rating to B2 Over Default Notice
-------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Valeant Pharmaceuticals International to B2 from B1, and kept
Valeant's ratings under review for possible further downgrade.
Moody's initially placed the ratings under review for possible
downgrade on Oct. 23, 2006.

This rating action follows the company's recent announcement
that the trustee for the holders of its 3% convertible notes due
2010 has declared a notice of default related to Valeant's late
filing of its Form 10-Q for the quarter ended Sept. 30.  

According to the indentures governing US$300-million of
Valeant's senior notes, US$240 million of convertible notes due
2010 and US$240-million of convertible notes due 2013, failure
to file timely SEC reports constitutes a covenant violation.  If
the trustee or holders of 25% of the respective series of notes
or convertibles declares a default, Valeant must cure the
violation within 60 days or the trustee or holders may declare
the debt immediately due and payable.

The full amount of the potential debt acceleration is
approximately US$780 million.  Valeant reported cash and short-
term investments of US$253 million as of June 30, 2006.  Valeant
does not currently maintain committed credit facilities.

In addition, the rating downgrade reflects several challenges
that Valeant faces in its core pharmaceutical business that
could hinder an improvement in cash flow.  These challenges
include:

   (1) boosting sales of newly launched products without a
       substantial increase in promotional spending; and

   (2) entering favorable co-development agreements with
       external partners for several late-stage pipeline
       products.  Valeant's newly launched products include
       elapar (for Parkinson's disease) and Cesamet (a synthetic
       cannabinoid for chemotherapy-induced nausea and
       vomiting).  Zelapar faces competition from Teva
       Pharmaceutical's new Parkinson's product (Agilect).
       Meanwhile, Valeant and Par Pharmaceuticals recently
       terminated a co-promotion arrangement for Cesamet.

Valeant's late-stage pipeline products include Viramidine and
retigabine.  For both of these products, Moody's believes that
Valeant would be challenged to fully fund the remaining clinical
trials without the financial resources of a co-development
partner.  Based on setbacks this year in the Viramidine clinical
development program, Moody's does not anticipate a launch prior
to 2010 or 2011, even with a co-development partner.

Moody's acknowledges several recent positive developments,
including:

   (1) ongoing progress at cost-restructuring initiatives; and

   (2) an out-licensing agreement with Schering-Plough
       Corporation for Pradefovir in which Valeant will receive
       US$19.2 million upfront and milestones potentially
       totaling US$65 million, plus royalties on any future
        sales.

Moody's ongoing rating review will primarily focus on Valeant's
ability to avoid an acceleration of its debt maturities due to
its late 10-Q filing.  Moody's currently believes that by mid-
January the ratings could be downgraded further unless one of
the following events occurs:

   (1) Valeant cures the default by filing its Form 10-Q;

   (2) Valeant obtains waivers from the holders of the senior
       notes and convertible notes waiving the default or the
       provision related to debt acceleration; or

   (3) Valeant obtains committed credit facilities for the full
       amount of its potentially accelerated debt maturities.  
       If one of those events does not occur, the ratings could
       be subject to a multi-notch downgrade.

Ratings downgraded and left under review for possible further
downgrade:

    * Valeant Pharmaceuticals International

      -- Corporate Family Rating to B2 from B1
      -- Probability of default rating to B1 from Ba3

Rating left under review for possible further downgrade:

    * Valeant Pharmaceuticals International

       -- senior unsecured notes of US$300 million due 2011: Ba3
          (LGD3, 39%)

The Ba3 rating on Valeant's senior unsecured notes due 2011 is
not being downgraded at this time, but remains under review for
downgrade.  Although the expected loss on these notes has
widened as a result of the downgrade of the Corporate Family
Rating, the expected loss is still within the range applicable
for the Ba3 rating specified in Moody's Loss Given Default
Methodology.

Moody's does not rate Valeant's 3% convertible subordinated
notes of US$240-million due 2010 or its 4% convertible
subordinated notes of US$240 million due 2013.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International [NYSE: VRX] is a global specialty pharmaceutical
company with US$823 million of 2005 revenues.


=============
D E N M A R K
=============


SITEL CORPORATION: Earns US$7.4 Million in 2006 Second Quarter
--------------------------------------------------------------
Sitel Corp. reported US$7.4 million of net income on US$278.3
million of revenues for the quarter ended June 30, 2006,
compared with US$2.6 million of net income on US$251.8 million
of revenues for the same period in 2005.

Revenue increased US$26.5 million, mainly due to the US$23.7
million increase in European revenue and the US$4.3 million
increase in Latin America revenue, offset by a US$1.4 million
decrease in Asia Pacific revenue.

North American revenue in the first quarter of 2006 remained
consistent compared to the same period in 2005.  A decrease of
US$24.3 million of revenue resulting from the loss of General
Motors was offset by US$24.2 million of revenue growth primarily
in customer acquisition, technical support and risk management.  
The weakening of the U.S. dollar versus the Canadian dollar
resulted in US$600,000 of the increase.

European revenue increased US$23.7 million for the three months
ended June 30, 2006, compared to the same period in 2005.  
Higher sales volumes from new and existing clients resulted in
an increase in revenue of US$24.2 million for the three months
ended June 30, 2006, compared to the same period in 2005.  The
strengthening of the U.S. dollar versus the British pound and
Euro partially offset this increase by US$500,000.

Latin America revenue increased US$4.3 million for the three
months ended June 30, 2006, compared to the same period in 2005.  
Higher sales volumes from new and existing clients resulted in
an increase in revenue of US$3.4 million, while the weakening of
the US dollar versus the Brazilian Real resulted in the
remaining US$900,000 of the increase.

Asia Pacific revenue decreased US$1.4 million for the three
months ended June 30, 2006, compared to the same period in 2005.   
Lower sales volumes with existing clients resulted in a decrease
in revenue of US$300,000, while the strengthening of the U.S.
dollar versus the New Zealand and Australian dollars resulted in
the remaining US$1.1 million of the decrease.

The US$4.8 million increase in net income is primarily due to
the US$26.5 million increase in revenues, the US$6 million gain
on settlement with a business partner, the US$1.1 million
decrease in interest expense, the US$1.3 million increase in
equity in earnings of affiliates, and the US$549,000 increase in
other income, offset by the US$28.4 million increase in
operating expenses(excluding the effects of the US$6 million
settlement gain).  The increase in operating expenses is
primarily due to the US$25.1 million increase in direct labor
and telecommunications expense.

Interest expense decreased US$1.1 million or 34.0% due to a gain
of US$1.4 million for a reduction in interest on a Brazil tax
obligation being recorded as a reduction of these expenses.  
This gain was partially offset by higher amortization of debt
acquisition costs.  

Equity in earnings of affiliates increased US$1.3 million for
the three months ended June 30, 2006, compared to the same
period in 2005 primarily due to the US$1.2 million in insurance
proceeds received by the company's India joint venture related
to flood damage in 2005.

Other income increased primarily as a result of fluctuations in
foreign currency re-measurement gains arising from monetary
assets and liabilities denominated in currencies other than a
business unit's functional currency.

The increase in direct labor and telecommunications expense was
primarily the result of higher ramp-up costs of new client
programs, particularly in Europe, and a change in the mix of
services provided in the three months ended June 30, 2006,
compared to the same period in 2005.

At June 30, 2006, the company's balance sheet showed US$429.2
million in total assets, US$288.5 million in total liabilities,
US$5.8 million in minority interests, and US$134.9 million in
total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2006, are available
for free at http://researcharchives.com/t/s?1733

              Merger Agreement with ClientLogic Corp.

On Oct. 13, 2006, the company and ClientLogic Corporation
disclosed that they have signed a definitive merger agreement.
Under the terms of the agreement, a newly formed subsidiary of
ClientLogic will merge with the company and pay US$4.05 per
share in cash for all of the outstanding common stock of the
company.  The board of directors of each company has unanimously
approved the transaction.  The transaction is expected to be
completed in the first quarter of 2007 and is subject to
customary closing conditions, including approval of the
company's shareholders and regulatory clearances.  The company's
board of directors has recommended to its shareholders that they
vote in favor of the transaction.  

                       About Sitel Corp.

Sitel Corp. (NYSE:SWW) -- http://www.sitel.com/-- provides  
outsourced customer support services.  On behalf of many of the
world's leading organizations, SITEL designs and improves
customer contact models across its clients' customer
acquisition, retention and development cycles.  SITEL manages
approximately two million customer interactions per day via the
telephone, e-mail, Internet and traditional mail.   SITEL has
over 42,000 employees in 101 global contact centers, utilizing
more than 32 languages and dialects to serve customers in 56
countries including Argentina, Denmark, Panama, Philippines, and
the United Kingdom, among others.

                           *     *     *  

Sitel Corp. carries Standard & Poor's Rating Services 'B'
corporate credit rating.


=============
F I N L A N D
=============


METSO OYJ: Injects EUR15 Million to Raise Paper Unit's Capacity
---------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, is expanding the production
capacity of paper machine rolls, and will build a new production
line for big, wide castings in Jyvaskyla, Finland.  The value of
the investment is around EUR15 million.

The new production line will enable roll castings up to 12
meters in width.  The investment will also shorten the lead
times and improve occupational safety at the foundry.  The
demand for wide paper machines has developed favorably in recent
years.

In addition to new paper machines, rolls are needed in the
modernizations and rebuilds of the installed machines. Large
paper machine rolls are one of the most demanding components in
a paper machine.  Metso Paper has developed the manufacturing
know-how and machinery in the Jyvaskyla plant over a number of
years to meet the needs of roll manufacturing.

                          About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- serves customers in the pulp and paper
industry, rock and minerals processing, the energy industry and
selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.

                        *     *     *

As reported in the TCR-Europe on April 11, Standard & Poor's
Ratings Services revised its outlook on Finland-based machinery
and engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


===========
F R A N C E
===========


ALCATEL-LUCENT: Soliciting Consents to Amend Sr. Note Indenture
---------------------------------------------------------------
Alcatel-Lucent commenced a solicitation of consents from holders
of record as of Dec. 14, 2006, of Lucent's 2.75% Series A
Convertible Senior Debentures due 2023 and 2.75% Series B
Convertible Senior Debentures due 2025 to amend the Indenture
for the Debentures.  

The amendment would allow Alcatel-Lucent to provide the holders
of the Debentures such information, documents and other reports
that are required to be filed by the company pursuant to
sections 13 and 15(d) of the U.S. Securities Exchange Act of
1934, instead of having to produce separate information,
documents and reports for Lucent.

Under the terms of the consent solicitation, if Alcatel-Lucent
receives the required consents, the company will:

   -- issue a full and unconditional subordinated guaranty of
      the Debentures;

   -- increase the interest payable on the principal amount of
      the Debentures by 12.5 basis points per year;

   -- provide a one-time upward adjustment to the conversion
      rate to 59.7015 ADSs for each US$1,000 in principal amount
      of Series A Debentures and to 65.1465 ADSs for each
      US$1,000 principal amount of Series B Debentures; and

   -- add a provision to the Indenture that will cause an upward
      adjustment to the conversion rate upon cash dividends or
      distributions on the Alcatel-Lucent ordinary shares in
      excess of EUR0.08 per share per year.

The details regarding the terms of the consent solicitation can
be found in the consent solicitation statement/prospectus, dated
Dec. 15, 2006, which supercedes the joint solicitation
statement/prospectus and supplement dated Nov. 14, 2006, and
Nov. 27, 2006, respectively.  All holders of the Debentures who
have previously delivered consents must redeliver such consents.

The consent solicitation will expire at 1:00 p.m. Eastern Time
on Dec. 29, 2006, unless extended.  The adoption of the proposed
amendments to the Indenture requires the consent of the holders
of a majority in aggregate principal amount of each series of
Debentures.

Holders of the Debentures can obtain copies of the consent
solicitation statement/prospectus, the related letter of consent
and other related materials from D.F. King & Co., the
Information Agent, at +1 (888) 887-0082 (US toll-free) or, for
banks and brokers, +1 (212) 269-5550.

Bear, Stearns & Co. Inc. is acting as the Solicitation Agent for
the consent solicitation and can be contacted at +1 (877) 696-
BEAR (toll-free).

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable  
service providers, enterprises and governments worldwide, to
deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                           *     *     *

As reported in the TCR-Europe on Dec. 14, following the
completion of Alcatel S.A.'s merger with Lucent
Technologies Inc., at which time Alcatel was renamed Alcatel-
Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006, research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


ALCATEL-LUCENT: Inks IP Network Contract with Hawaiian Telcom
-------------------------------------------------------------
Hawaiian Telcom has selected Alcatel-Lucent's Triple Play
Service Delivery Architecture as the blueprint for network
transformation that will enable the delivery of new and
innovative consumer and enterprise service offerings.

Hawaiian Telcom will deploy Alcatel-Lucent's access and IP
routing solutions to replace the existing high-speed Internet
infrastructure, and to provide the scalability, reliability and
speeds necessary to deliver compelling new service offerings
such as IPTV, advanced and interactive Internet and premium
Ethernet and IP VPN services.

"By offering innovative and advanced services to our consumer,
small business and enterprise customers, Hawaiian Telcom is
strengthening its competitive position," Michael McHale, Chief
Marketing Officer for Hawaiian Telcom, said.  "The deployment of
Alcatel-Lucent's Triple Play Service Delivery Architecture is a
significant element of our ongoing network transformation
strategy to IP-based technologies."

"The transformation of operator networks is something that we
continue to see in all regions around the world as our customers
strive to maintain an edge in a competitive marketplace," Tim
Krause, Alcatel-Lucent's Chief Marketing Officer, North America,
said.  "We are pleased to continue working with Hawaiian Telcom
as it transforms its network and business in a way that will
benefit both consumers and enterprises."

Alcatel-Lucent will provide Hawaiian Telcom with its state-of-
the-art ISAM product family a modular and flexible platform
(including the Alcatel 7330 ISAM FTTN and the Alcatel 7342 ISAM
FTTU) to extend the bandwidth potential of fiber from the
network core to the subscriber premises, as well as the 7750
Service Router (SR) and Alcatel 7450 Ethernet Service Switch
(ESS) to address its service routing requirements.

Worldwide, more than 150 service providers in over 65 countries,
including AT&T, BT, Telia Sonera, Telefonica and China Telecom,
have selected the Alcatel IP portfolio.

Alcatel-Lucent's ISAM product family is the industry's first IP
broadband services access platform, accommodating a wide range
of access technologies and network topologies. The ISAM family
is specifically designed to minimize the complexity and ensure
profitability as service providers transform their broadband
access networks to support full triple play service adoption.  
In addition to Hawaiian Telecom, more than 100 service providers
worldwide have chosen Alcatel-Lucent's ISAM family of products,
including AT&T, China Telecom, Swisscom, and TELUS.

                      About Hawaiian Telcom

Hawaiian Telcom -- http://www.hawaiiantel.com/-- is the  
Hawaii's leading telecommunications provider, offering a wide
spectrum of telecommunications products and services, which
include local and long distance service, high-speed Internet,
wireless services, and print directory and Internet directory
services.

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable  
service providers, enterprises and governments worldwide, to
deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                           *     *     *

As reported in the TCR-Europe on Dec. 14, following the
completion of Alcatel S.A.'s merger with Lucent
Technologies Inc., at which time Alcatel was renamed Alcatel-
Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
U.S. activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006, research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


EUROTUNNEL GROUP: French Court Sets Jan. 15 Plan Hearing
--------------------------------------------------------
The Paris Commercial Court will convene a hearing on Jan. 15,
2007, to consider the approval of Eurotunnel Group's proposed
safeguard plan to restructure the company's GBP6.2 billion debt.

Emmanuel Hess and Laurent Le Guerneve, the two court-appointed
administrators to Eurotunnel, have proposed that the Commercial
Court approve the plan.

"The Safeguard Plan... presents the merits of restructuring the
debt to a level compatible with the capacity of the company to
reimburse, but also presents the advantage of allowing
operations to continue without modification of the levels of
employment or working conditions," Messrs. Hess and Le Guerneve
said.

                      Terms of the Plan

The principal elements of the proposals include:

   1) the creation of a new company, Groupe Eurotunnel, which
      will launch an Exchange Tender Offer (ETO) to Eurotunnel's
      current shareholders.  The shareholders will hold a
      minimum 13% of the equity in Groupe Eurotunnel;

   2) Groupe Eurotunnel will subscribe to a new long-term loan
      of GBP2.840 billion (less than half of the current debt)
      from an international banking consortium;

   3) Groupe Eurotunnel will issue GBP1.275 billion of
      convertible hybrid notes.  The hybrid notes will be
      convertible over a maximum of three years and one month.
      Approximately 61.7% of the hybrids are redeemable by the
      company; and

   4) current Eurotunnel shareholders, who subscribe to the ETO,
      will hold a minimum of 13% of the equity in Groupe
      Eurotunnel.  They can subscribe directly to the hybrid, up
      to a value of GBP60 million (EUR87.7 million) and will
      benefit from free warrants.  The redemption of hybrid
      notes by the company would allow them to increase their
      share of the equity from 13% to 67%.

The plan requires shareholder acceptance of at least 60 percent.  
Reuters reports that some shareholder groups are trying to get a
better deal.  Disgruntled creditors can appeal the court's
decision in other courts.

"We will deal with the protests," Eurotunnel chairman and CEO
Jacques Gounon was quoted by Reuters as saying.  "What is
important is that we have a sound and balanced plan, backed by
creditors, bondholders, suppliers and staff."

On Nov. 27, creditors representing 72% of the financial
establishment committee voted in favor of the company's proposed
safeguard-restructuring plan.  The committee holds 70% of the
company's GBP6.2 billion debt.

The rail operator also obtained a unanimous vote by its
principal suppliers, with 82.17% of bondholders also voting in
favor of the plan.

                         About Eurotunnel

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a    
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.

                        Company Crisis

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faced
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.

Eurotunnel obtained Aug. 2 an order placing the channel operator
under the protection of the Court pursuant to the new safeguard
legislation (Procedure de sauvegarde).


KB HOME: Planned Restatement Prompts Moody's Ratings Review
-----------------------------------------------------------
Moody's Investors Service placed all of the ratings of KB Home
under review for possible downgrade, including its Ba1 corporate
family rating and senior notes rating and Ba2 senior
subordinated debt rating.

This action comes after the company's recent report that it
would have to restate its fiscal 2005 10-K and its 10-Q's for
the first two quarters of fiscal 2006.

This restatement, plus the late filing of the company's 10-Q for
its third fiscal quarter of 2006, will probably not be completed
before Dec. 31, 2006, assuming that the SEC does not require
additional periods to be restated.  Moody's has previously
commented that further postponement of the company's fiscal
third quarter 10-Q filing beyond Dec. 31, 2006, would prompt a
review for downgrade.

On Dec, 7, 2006, KB Home, in consultation with its Audit and
Compliance Committee and after discussion with its auditors,
Ernst & Young LLP, determined that the company's previously
issued financial statements and any related reports of its
independent registered public accounting firm for the fiscal
years ended Nov. 30, 2003, 2004 and 2005, which are included in
the company's Annual Report on Form 10-K for the year ended Nov.
30, 2005, and the interim financial statements included in the
company's Quarterly Reports on Form 10-Q for the quarters ended
Feb. 28, 2006, and May 31, 2006, should no longer be relied upon
and will be restated.

The company stated in its original 2005 10-K that based on
management's evaluation under the Committee of Sponsoring
Organizations of the Treadway Commission framework and
applicable SEC rules, it concluded that internal controls over
financial reporting were effective as of Nov. 30, 2005.  
However, due to the recent investigation surrounding option
backdating, Moody's believes that a material weakness existed
pertaining to the company's option granting practices.

Moody's expects this internal control weakness to be disclosed
of in the restated 2005 10-K. We also believe that management
and the board will sufficiently address this weakness going
forward.

The company has received consent from its senior note holders to
amend the indentures and to waive default until Feb. 23, 2007
for failure to file its fiscal third quarter 2006 10-Q in a
timely fashion.  Formal approval from its banking group for the
same grace period occurred this week.

Moody's review will focus on KB Home's ability to build and
maintain liquidity in the face both of a weak housing
environment and the worst case scenario of having to fund
substantial repayment of its public senior and senior sub notes.  
The review's conclusion will also depend heavily on decisions
made with regard to any further required restatements.  An SEC
decision to require restatement for more periods than currently
contemplated by the company's action plan may cause the company
to miss its Feb. 23, 2007 filing deadline.  This would either
cause the company to have to go back to its note holders and
banks to seek additional waivers or trigger defaults under the
notes and bank credit facility.

Founded in 1957 and headquartered in Los Angeles, California, KB
Home is one of America's largest homebuilders, with domestic
operating divisions in the following regions and states: West
Coast -- California; Southwest -- Arizona, Nevada and New
Mexico; Central -- Colorado, Illinois, Indiana and Texas; and
Southeast -- Florida, Georgia, North Carolina and South
Carolina.  Kaufman & Broad S.A., the company's 49%-owned
subsidiary, is one of the largest homebuilders in France.  KB
Home's fiscal 2005 revenues and net income were US$9.4 billion
and US$842 million, respectively.


TK ALUMINUM: Posts EUR22-Mln 3Q Loss; May Breach Bond Covenant
--------------------------------------------------------------
TK Aluminum Ltd. released its financial results for the third
quarter and nine months ended Sept. 30, 2006.

The company reported EUR22 million in net losses against
EUR243.5 million in revenues for the third quarter of 2006,
compared with EUR9 million in net losses against EUR229 million
in revenues for the same period in 2005.

TK Aluminum posted EUR35.7 million in net losses against
EUR799.8 million in revenues for the third quarter of 2006,
compared with EUR40.9 million in net loss against EUR747.4
million in revenues for the same period in 2005.

"Our results continue to be adversely affected by the
challenging automotive environment," reported Jake Hirsch, CEO
of Teksid Aluminum, said.  "However, we have made significant
progress in supporting the Company and shareholder strategy with
respect to the anticipated business model.  In addition to the
previously announced definitive agreement to sell certain assets
to Nemak, we also can now announce the execution of a non-
binding letter of intent to sell the Company's interest in
France, Italy and Germany to one or more affiliates of BAVARIA
Industriekapital AG."

                        Tender Offer

Concurrently, and in support of that strategy, the Company is
pursuing additional sources of liquidity and announcing the
termination of the Tender Offer and Consent Solicitation.

"We decided to proactively seek to access the debt market in an
effort to strengthen the Company's capital structure, and obtain
greater financial flexibility and additional liquidity prior to
the sale of certain assets to Nemak and BAVARIA," Jon Smith,
Interim Chief Financial Officer of Teksid Aluminum, said.  "The
Company is currently examining its options with respect to the
terms of the Tender Offer and Consent Solicitation and intends
to recommence an offer on terms and conditions to be
determined."

               Liquidity and Covenants Compliance

The company has historically funded its working capital needs,
capital expenditures and debt service requirements with cash
flows from operations and existing cash resources, including
borrowings under our Senior Credit Facility and proceeds from
the sale of receivables under our current factoring
arrangements.  

As of Nov. 30, 2006, the company had cash and cash reserves of
EUR25 million plus available factoring lines of EUR41 million
and has utilized our availability under its Senior Credit
Facility.

The Company was in full compliance with the financial covenants
of its Senior Credit Agreement and with its Second Lien
Agreement with respect to the period ended Sept. 30, 2006.  

                     Covenant Default

However, the company is currently in default of certain non-
financial covenants under the Senior Credit Facility and Second
Lien Facility owing to failure to notify the lenders prior to
certain amendments to the organizational documents of certain of
its subsidiaries.  It also failed to provide the lenders with a
perfected security interest in its Argentine assets within the
time period specified in the Senior Credit Facility and Second
Lien Facility.

The company is in discussions with the agents to the lenders
under such facilities to waive the defaults.  There can be no
assurance that the company will be able to obtain a waiver on
terms acceptable, or at all.  In addition, the company expects
that it may not comply with the financial covenants in our
Senior Credit Facility and Second Lien Facility for the quarter
ending Dec. 31, 2006.

Following a failure to comply with these financial covenants,
any available borrowings under the Senior Credit Facility would
not be permitted without agreement from our lenders.  In
addition, following the failure to comply, the senior and second
lien lenders would have the ability to exercise all of their
rights including requiring the amounts due under the Senior
Credit Facility and Second Lien Facility to become due and
payable.  In the event of acceleration under such facilities,
bondholders would be entitled to declare the aggregate principal
and unpaid interest outstanding under the senior notes to be due
and payable pursuant to the cross default provisions of the
senior notes indenture.

"In order to assure sufficient access to capital to fund
operations in the near term, the company is exploring a variety
of options to improve our near term liquidity," the company
said.  "We have obtained definitive commitments from certain
customers related to favorable payment terms and the company is
negotiating with a third party to provide the Company with a
loan to be used to fund the Company's liquidity needs."

In addition, the consummation of the Nemak transaction will
provide cash, which will be used to repay a portion of our
outstanding debt obligations.  The deterioration of the
automotive market, unfavorable foreign exchange movements, and
new third party financing will adversely affect the amount of
funds available for the repurchase of our Senior Notes, which
was contemplated at the time of announcement of the Nemak
transaction.

As previously announced, the consummation of the Nemak
transaction is subject to various conditions, including the
receipt of certain consents and waivers from our bondholders and
other customary conditions, including regulatory approvals.   
There can be no assurance that we will be successful in
obtaining additional capital resources or that the Nemak
transaction will be consummated within the time period necessary
to provide us with sufficient liquidity to fund operations, or
at all.  Should the Nemak transaction not be consummated, and
the Company is not successful in obtaining additional third
party financing, the Company intends to pursue all available
options in light of its liquidity needs.

Headquartered in Turin, Italy, TK Aluminum Ltd. --
http://www.teksidaluminum.com/-- manufactures light metal  
castings for the automotive industry.  The company's core
products are cylinder heads and blocks, and transmission and
suspension components produced with a wide range of
technologies: semipermanent mold gravity casting, high-pressure
die casting, low pressure, precision sand core and lost foam.

The company also operates in France, Poland, U.S.A., Mexico,
Brazil, Argentina and China.

                        *     *     *

As reported in the TCR-Europe on Nov. 8, Standard & Poor's
Ratings Services placed its 'CCC+' long-term corporate credit
rating on Bermuda-incorporated TK Aluminum Ltd. on CreditWatch
with developing implications, meaning that the rating could be
raised, lowered, or affirmed.

As reported in the TCR-Europe on Nov. 7, Moody's Investors
Service placed the Caa1 Corporate Family Rating of Teksid
Aluminum Ltd. and the Caa3 senior unsecured rating of Teksid
Aluminum Luxembourg Sarl SCA on review with an uncertain
direction, following the company's announcement that it has
entered into a definitive agreement to sell certain core assets
to Tenedora Nemak, S.A. de C.V and the intention of a redemption
of outstanding debt with the proceeds of the asset disposal.

On Review Direction Uncertain:

Issuer: TK Aluminum Ltd.

    * Corporate Family Rating, currently Caa1

Issuer: Teksid Aluminum Luxembourg Sarl SCA

    * Senior Unsecured Regular Bond/Debenture, currently Caa3

Outlook Actions:

Issuer: TK Aluminum Ltd.

    * Outlook, Changed To Rating Under Review From Negative

Issuer: Teksid Aluminum Luxembourg Sarl SCA

    * Outlook, Changed To Rating Under Review From Negative


TK ALUMINUM: S&P Cuts Rating to CCC- on Possible Covenant Breach
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating to 'CCC-' from 'CCC+' on Bermuda-
incorporated TK Aluminum Ltd., a manufacturer of
aluminum auto parts.  

The rating remains on CreditWatch with developing implications,
where it was placed on Nov. 6, 2006.  The developing
implications mean that the rating could be raised, lowered, or
affirmed.

"The downgrade follows the company's announcement that it may
not be in compliance with the financial covenants on its senior
and second-lien credit facilities at Dec. 31, 2006," said
Standard & Poor's credit analyst Barbara Castellano.

TKA is actively negotiating to increase its near-term liquidity
sources.  The tender offer for the senior notes due in 2011 has
been terminated unsuccessfully, and a new tender offer for these
notes should be launched shortly.  This delay could be reflected
in the closure date of TKA's deal to sell its operations in
North and South America, China, and Poland to Tenedora
Nemak S.A. de C.V., thereby increasing liquidity needs to
sustain operating activity for a longer period of time.

"We are now concerned that TKA might not respect the payments
contractually due on its financial debt, and that there is
increasing risk of a solution that would include agreements to
either reduce or postpone the scheduled payments, which would
trigger a default according to our criteria," said Ms.
Castellano.

TKA has also announced the execution of a non-binding letter of
intent to sell its assets in France, Italy, and Germany to
BAVARIA Industriekapital AG.  If such deal is completed, TKA
will have sold all of its operating activities.

TKA's net financial debt for the nine months ended Sept. 30,
2006, totaled about EUR540 million, adjusted for leases and
pension liabilities.


VALEANT PHARMA: Moody's Cuts Rating to B2 Over Default Notice
-------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Valeant Pharmaceuticals International to B2 from B1, and kept
Valeant's ratings under review for possible further downgrade.
Moody's initially placed the ratings under review for possible
downgrade on Oct. 23, 2006.

This rating action follows the company's recent announcement
that the trustee for the holders of its 3% convertible notes due
2010 has declared a notice of default related to Valeant's late
filing of its Form 10-Q for the quarter ended Sept. 30.  

According to the indentures governing US$300-million of
Valeant's senior notes, US$240 million of convertible notes due
2010 and US$240-million of convertible notes due 2013, failure
to file timely SEC reports constitutes a covenant violation.  If
the trustee or holders of 25% of the respective series of notes
or convertibles declares a default, Valeant must cure the
violation within 60 days or the trustee or holders may declare
the debt immediately due and payable.

The full amount of the potential debt acceleration is
approximately US$780 million.  Valeant reported cash and short-
term investments of US$253 million as of June 30, 2006.  Valeant
does not currently maintain committed credit facilities.

In addition, the rating downgrade reflects several challenges
that Valeant faces in its core pharmaceutical business that
could hinder an improvement in cash flow.  These challenges
include:

   (1) boosting sales of newly launched products without a
       substantial increase in promotional spending; and

   (2) entering favorable co-development agreements with
       external partners for several late-stage pipeline
       products.  Valeant's newly launched products include
       elapar (for Parkinson's disease) and Cesamet (a synthetic
       cannabinoid for chemotherapy-induced nausea and
       vomiting).  Zelapar faces competition from Teva
       Pharmaceutical's new Parkinson's product (Agilect).
       Meanwhile, Valeant and Par Pharmaceuticals recently
       terminated a co-promotion arrangement for Cesamet.

Valeant's late-stage pipeline products include Viramidine and
retigabine.  For both of these products, Moody's believes that
Valeant would be challenged to fully fund the remaining clinical
trials without the financial resources of a co-development
partner.  Based on setbacks this year in the Viramidine clinical
development program, Moody's does not anticipate a launch prior
to 2010 or 2011, even with a co-development partner.

Moody's acknowledges several recent positive developments,
including:

   (1) ongoing progress at cost-restructuring initiatives; and

   (2) an out-licensing agreement with Schering-Plough
       Corporation for Pradefovir in which Valeant will receive
       US$19.2 million upfront and milestones potentially
       totaling US$65 million, plus royalties on any future
        sales.

Moody's ongoing rating review will primarily focus on Valeant's
ability to avoid an acceleration of its debt maturities due to
its late 10-Q filing.  Moody's currently believes that by mid-
January the ratings could be downgraded further unless one of
the following events occurs:

   (1) Valeant cures the default by filing its Form 10-Q;

   (2) Valeant obtains waivers from the holders of the senior
       notes and convertible notes waiving the default or the
       provision related to debt acceleration; or

   (3) Valeant obtains committed credit facilities for the full
       amount of its potentially accelerated debt maturities.  
       If one of those events does not occur, the ratings could
       be subject to a multi-notch downgrade.

Ratings downgraded and left under review for possible further
downgrade:

    * Valeant Pharmaceuticals International

      -- Corporate Family Rating to B2 from B1
      -- Probability of default rating to B1 from Ba3

Rating left under review for possible further downgrade:

    * Valeant Pharmaceuticals International

       -- senior unsecured notes of US$300 million due 2011: Ba3
          (LGD3, 39%)

The Ba3 rating on Valeant's senior unsecured notes due 2011 is
not being downgraded at this time, but remains under review for
downgrade.  Although the expected loss on these notes has
widened as a result of the downgrade of the Corporate Family
Rating, the expected loss is still within the range applicable
for the Ba3 rating specified in Moody's Loss Given Default
Methodology.

Moody's does not rate Valeant's 3% convertible subordinated
notes of US$240-million due 2010 or its 4% convertible
subordinated notes of US$240 million due 2013.

Headquartered in Costa Mesa, California, Valeant Pharmaceuticals
International [NYSE: VRX] is a global specialty pharmaceutical
company with US$823 million of 2005 revenues.


VTB BANK FRANCE: Fitch Affirms Individual Rating at C/D
-------------------------------------------------------
Fitch Ratings affirmed the ratings of Russia-based JSC
Vneshtorgbank and its London-, Paris- and Cyprus-based
subsidiaries, respectively VTB Europe plc, VTB Bank France SA.
and Russian Commercial Bank (Cyprus), at:

   * JSC Vneshtorgbank:

      -- Foreign currency Issuer Default rating: 'BBB+',
         Short-term foreign currency 'F2', Individual 'C/D',
         Support '2', National Long-term 'AAA(rus)', Local
         currency IDR 'BBB+'.

         The Outlooks on the bank's IDRs and National Long-term
         rating are Stable.

         VTB's IDRs, Short-term and Support ratings are
         underpinned by its majority state ownership, importance
         to the Russian banking system, and Fitch's view of the
         high probability of support from the Russian state in
         case of need.  However, the bank's support floor
         continues to depend on its status, ownership and
         importance to the Russian banking system.  Upside
         potential for the Individual rating is currently
         limited given VTB's exposure to political risk,
         pressured capitalization, transparency issues
         surrounding the bank's largest credit exposures and
         increasing operational and credit risks.

   * VTB Europe plc:

      -- Foreign currency IDR 'BBB', Short-term foreign
         currency, 'F3', Individual 'C' and Support '2'.  

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         In light of VTBE's 89%-owner, VTB, which is Russia's
         second largest, state-owned bank, as well as the
         comfort letter Fitch understands that VTB has provided
         to the UK's Financial Services Authority in respect of
         VTBE (which although not legally binding provides a
         strong moral obligation to support VTBE), there is a
         high probability that support for VTBE would be
         forthcoming from VTB, if needed, flowing ultimately
         from the Russian state.  Fitch does not expect an
         upgrade of VTBE's Individual rating in the near future.
         Downward movement could result from failure to offset
         revenue pressures, a decline in asset quality or an
         increase in risk appetite.

   * VTB Bank France SA.:

      -- Foreign currency IDR 'BBB', Short-term foreign currency
         'F3', Individual 'C/D' and Support '2'.

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         The Issuer Default, Short-term and Support ratings of
         VTBF reflect Fitch's view of the high probability of
         support from VTB, if needed, flowing ultimately from
         the Russian government.  This is based on VTBF's 87%-
         ownerhip by VTB, as well as the assurances provided by
         VTB to the French authorities in respect of VTBF's
         solvency and by the Central Bank of Russia (VTBF's
         former majority owner) in respect of VTBF's liquidity
         (up until end-2007).  Fitch does not expect an upgrade
         of VTBF's Individual rating in the near future.  
         However, downward movement could result from failure to
         offset revenue pressures or should VTB channel upstream
         a large amount of capital from VTBF.

   * Russian Commercial Bank (Cyprus):

         Foreign currency IDR 'BBB', Short-term foreign currency
         'F3' and Support '2'.  The Outlook on the bank's IDR is
         Stable mirroring that assigned to VTB's IDR.  RCBC's
         Individual rating of 'D/E' is affirmed and withdrawn.
         
         RCBC's ratings reflect the high probability of support
         being forthcoming from its 100% shareholder, VTB, in
         case of need.  Under the terms of RCBC's banking
         license granted by the Cypriot authorities, its
         obligations are guaranteed by VTB in the case of RCBC
         being wound up.  However, in light of possible
         timeliness issues relating to enforcement of the
         guarantee, and also its cross-border nature, Fitch
         maintains a one-notch differential between the ratings
         of VTB and RCBC.  The withdrawal of RCBC's Individual
         rating reflects the extent of integration between RCBC
         and its parent, which makes an analysis of RCBC on a
         standalone basis difficult.  Fitch is informed that
         RCBC will remain a direct subsidiary of VTB for the
         foreseeable future, notwithstanding the ongoing
         restructuring of VTB's western European subsidiaries.

Founded in 1990, VTB is Russia's second-largest bank by assets
and equity.  Historically a corporate bank, it is also
aggressively expanding its domestic small and mid-sized
enterprise and retail banking operations.  VTB's strategy is to
become a mid-sized European bank.  Following a number of
acquisitions, VTB group comprises three major Russian banks,
seven banks in Western Europe, including VTBE and VTBF (both
acquired at end-2005) and RCBC, and four banks in CIS countries.  
It also has offices in Africa and plans to open new offices in
Asia.


=============
G E O R G I A
=============


METROMEDIA INT'L: Files 2004 Annual Report with U.S. SEC
--------------------------------------------------------
Metromedia International Group Inc. has filed with the U.S.
Securities and Exchange Commission its 2004 Annual Report on
Form 10-K.

With the filing of the 2004 Form 10-K, the Company has completed
a significant step in the restatement process that began in June
2005 and the Company is working diligently on completing and
filing with the SEC its outstanding Quarterly Reports on Form
10-Q for the fiscal periods ended March 31, June 30 and
Sept. 30, 2005 and 2006 and its outstanding Annual Report on
Form 10-K for the fiscal year ended Dec. 31, 2005.  

The Company cannot at this time provide any assurances as to
when these outstanding periodic reports will be completed and
filed with the SEC.

                        About Metromedia

Based in Charlotte, North Carolina, Metromedia International
Group (PINK SHEETS: MTRM-Common Stock and MTRMP-Preferred Stock)
-- http://www.metromedia-group.com/-- through its subsidiary,
Metromedia International Telecommunications, owns interests in
telecom and cable TV operations in Russia, Georgia, and
elsewhere in Eastern Europe.

The Company's core businesses includes Magticom, Ltd., the
leadingmobile telephony operator in Tbilisi, Georgia, and
Telecom Georgia, a well-positioned Georgian long distance
telephone operator.

                          *     *     *

In October 2006, Metromedia said it is filing a Chapter 11 Plan
in the U.S. after receiving a binding offer to acquire all of
the Company's business interests in Georgia for a cash price of
US$480 million from an investment group comprised of:

   -- Istithmar, an alternative investment house based in Dubai,
      United Arab Emirates;

   -- Salford Georgia, the Georgian office of Salford Capital
      Partners Inc., a private equity and investment management
      company which manages investments in the CIS and Central &
      Eastern Europe; and

   -- Emergent Telecom Ventures, a communications merchant bank
      focused on pursuing telecommunications opportunities in
      the Emerging Markets.

Upon the approval of the plan, all of the preferred and common
equity interests in the Company will be converted into the right
to receive the cash remaining after payment of all allowed
claims and the costs and expenses associated with the sale and
the Wind-Up.

Moody's Investors Service has placed Metromedia's subordinated
debt rating at B3 and junior subordinated debt rating at B2.


=============
G E R M A N Y
=============


ABR FORMENBAU: Creditors Must File Claims by Dec. 27
----------------------------------------------------
Creditors of ABR Formenbau GmbH have until Dec. 27 to register
their claims with court-appointed provisional administrator
Bernd Depping.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 18, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Wuppertal
         Meeting Room A234
         2nd Floor
         Isle 2
         42103 Wuppertal
         Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Wuppertal opened bankruptcy proceedings
against ABR Formenbau GmbH on Oct. 31.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The administrator can be reached at:

         Bernd Depping
         Hofkamp 138
         42103 Wuppertal
         Germany

The Debtor can be reached at:

         ABR Formenbau GmbH
         Schulstrasse 30
         42551 Velbert
         Germany


ALT HEDDERNHEIMER: Registration of Claims Ends Dec. 27
------------------------------------------------------
Creditors of Alt Heddernheimer Backhaus Stoerkel & Schoenherr
GmbH & Co. KG have until Dec. 27 to register their claims with
court-appointed provisional administrator Dr. Jan Markus
Plathner.

Creditors and other interested parties are encouraged to attend
the meeting at 9:10 a.m. on Jan. 25, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt/Main
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main
         Germany    
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Frankfurt am Main opened bankruptcy
proceedings against Alt Heddernheimer Backhaus Stoerkel &
Schoenherr GmbH & Co. KG on Nov. 1.  Consequently, all pending
proceedings against the company have been automatically stayed.

The administrator can be reached at:

         Dr. Jan Markus Plathner
         Lyoner Strasse 14
         60528 Frankfurt am Main
         Germany
         Tel: 069/9623340
         Fax: 069/96233422

The Debtor can be reached at:

         Alt Heddernheimer Backhaus Stoerkel &
         Schoenherr GmbH & Co. KG
         Alt Heddernheim 6
         60439 Frankfurt am Main
         Germany


ANTHRACITE EURO: Moody's Rates EUR25-Mln Class E Notes at Ba2
-------------------------------------------------------------
Moody's Investors Service assigned definitive ratings to the
Notes issued by Anthracite Euro CRE CDO 2006-1 plc, the first
Commercial Real Estate CDO comprised entirely of European
collateral.  The ratings assigned are:

   -- EUR142.5-million Class A Senior Floating Rate Notes due
      2042: Aaa;

   -- EUR29-million Class B Senior Floating Rate Notes due 2042:
      Aa1;

   -- EUR48.5-million Class C Deferrable Interest Floating Rate
      Notes due 2042: A1;

   -- EUR31-million Class D Deferrable Interest Floating Rate
      Notes due 2042: Baa2; and

   -- EUR25-million Class E Deferrable Interest Floating Rate
      Notes due 2042: Ba2;

The structure also includes an  EUR66.5-million Class F
Subordinated Notes due 2042, which has not been rated by
Moody's.

The definitive ratings address the expected loss posed to
investors by the legal final maturity date of each Class of
Notes.

These definitive ratings are based upon:

   1. An assessment of the credit quality and of the
      diversification of the assets to be included in the
      portfolio;

   2. An assessment of the eligibility criteria, reinvestment
      criteria and portfolio limits applicable to the future  
      additions to the portfolio;

   3. The protection against losses through the subordination of
      the more junior classes of notes to the more senior
      classes of notes;

   4. The expertise of Blackrock Financial Management, Inc. in
      the management of B, C and Mezzanine real estate loans,
      CMBS tranches, REOC and REIT debt; and

   5. The legal and structural integrity of the transaction.

Anthracite Euro CRE CDO 2006-1 p.l.c. is a managed Commercial
Real Estate CDO relating to a EUR335 million portfolio of B, C
and Mezzanine real estate loans, CMBS tranches, REOC and REIT
debt.  The portfolio will be managed by Blackrock Financial
Management, Inc.  Approximately 90% of the portfolio has already
been acquired at the closing date and the remaining portion will
be acquired during the ramp-up period.  Thereafter, the
portfolio of securities will be actively managed and the
portfolio manager may advise the issuer to buy or sell
collateral debt securities.  Any addition or removal of
collateral debt securities will be subject to a number of
portfolio criteria.  The portfolio at closing will comprise B
and C real estate loans and CMBS bonds for respectively 56.6%
and 36.6% of the target par amount.  The underlying assets are
mainly drawn from the U.K. and Germany.  The collateral will be
predominantly denominated in Euros, but may also consist of
assets denominated in other eligible currencies such as British
Pounds, Danish Crowns, Norwegian Crowns, Swedish Crowns and
Swiss Francs.  The FX risk related to all the non Euro assets
will be hedged via perfect asset swaps with eligible counter
parties.


ARBEITSGEMEINSCHAFT FRANKFURTER: Claims Bar Date Set at Dec. 27
---------------------------------------------------------------
Creditors of Arbeitsgemeinschaft Frankfurter Glas- und
Gebaudereiniger-Gesellschaft mit beschrankter Haftung have until
Dec. 27 to register their claims with court-appointed
provisional administrator Angelika Amend.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 25, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt/Main
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main
         Germany    
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Frankfurt/Main opened bankruptcy
proceedings against Arbeitsgemeinschaft Frankfurter Glas- und
Gebaudereiniger-Gesellschaft mit beschrankter Haftung on
Oct. 24.  Consequently, all pending proceedings against the
company have been automatically stayed.

The administrator can be reached at:

         Angelika Amend
         Minnholzweg 2b
         D-61476 Kronberg
         Germany
         Tel: 06173/78340
         Fax: 06173/783422

The Debtor can be reached at:

         Arbeitsgemeinschaft Frankfurter Glas- und
         Gebaudereiniger-Gesellschaft mit beschrankter Haftung
         Sontraer Strasse 3
         60386 Frankfurt am Main
         Germany


ASAT HOLDINGS: Weak Liquidity Prompts S&P's Junk Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on ASAT Holdings Ltd. to 'CCC' from 'B-
', reflecting heightened liquidity concerns and persistent
operating losses.  The outlook is negative.

At the same time, the issue rating on US$150 million in 9.25%
senior notes due in 2011 that are guaranteed by ASAT was also
lowered to 'CCC' from 'B-'.

"Our rating on ASAT reflects the company's very weak liquidity
and financial positions, limited financial flexibility due to a
heavy debt burden, concentrated customer base, and exposure to
the highly competitive and cyclical semiconductor industry,"
said Standard & Poor's credit analyst Jacphanie Cheung.  These
weaknesses are partly offset by opportunities for the company to
increase its profitability through ongoing cost-cutting measures
and access to advanced packaging technologies.

The company is facing significant financial pressure. In its
quarterly report for the period ended July 31, 2006, it said:
"As we continue to face commercial business challenges, we have
occasionally been in default or otherwise been out of compliance
with the covenants and conditions in the agreements governing
our debt.  Such defaults have been cured or otherwise remedied
by obtaining amendments or waivers from our creditors."

Standard & Poor's has very limited access to the company's
management and financial information.  The rating is based on
publicly available information.

ASAT has extremely tight liquidity and limited financial
flexibility because of its heavy debt burden.  Its cash balance
has fallen significantly due to negative operating cash flows
and high capital expenditure resulting from the relocation of
its manufacturing facilities from Hong Kong to China.

The company indicated that at the end of October 2006 it had
US$8.8 million in cash.  This was marginally sufficient to cover
the semi-annual interest payment of US$6.9 million on its senior
notes due 2011.  A US$1.3 million undrawn credit line and US$5
million remaining from a purchase money loan facility should
help support ASAT's liquidity needs over the short term.
However, the availability of the remaining purchase money loan
facility is subject to certain conditions. In addition, the
company's heavy interest burden, persistent operating losses,
competitive pressure on prices, and heavy capital expenditure
should continue to exert pressure on the company's liquidity
over the near term.

ASAT is a small operator in the highly fragmented and
competitive semiconductor sector.  The company's capital
structure is highly leveraged, as reflected by a very high ratio
of net debt to capitalization of 162% as at July 31, 2006, due
to accumulating losses.  In the first quarter of fiscal 2007,
ended July 31, 2006, the company posted a net loss of US$8.1
million, compared with a net loss of US$17.1 million in the
previous quarter.  Although the company indicates that its
preliminary results for the second quarter of fiscal 2007 show
an improvement in its gross margin and narrower losses, Standard
& Poor's is concerned that the company's cash balance has
continued to fall to a marginal level.

The company maintains operations in Germany, Hong Kong, China,
Singapore, Korea, and the United States.


BOLAT DIENSTLEISTUNGEN: Creditors Must File Claims by Dec. 27
-------------------------------------------------------------
Creditors of Bolat Dienstleistungen GmbH have until Dec. 27 to
register their claims with court-appointed provisional
administrator Manfred Burghardt.

Creditors and other interested parties are encouraged to attend
the meeting at 9:55 a.m. on Feb. 7, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt/Main
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main
         Germany    
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Frankfurt/Main opened bankruptcy
proceedings against Bolat Dienstleistungen GmbH on Oct. 27.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The administrator can be reached at:

         Manfred Burghardt
         Theobald-Christ-Strasse 24
         60316 Frankfurt am Main
         Tel: 069/94414770
         Fax: 069/94414780

The Debtor can be reached at:

         Bolat Dienstleistungen GmbH
         Westerbachstrasse 277
         65936 Frankfurt am Main
         Germany


DAIMLERCHRYSLER: Unit Ordered to Pay US$350MM in U.S. Fraud Case
----------------------------------------------------------------
The Multnomah County Circuit Court has ordered DaimlerChrysler
North American Holding Corp. and its heavy truck subsidiary,
Freightliner LLC, to pay US$350 million in damages in connection
with a multinational fraud case, CNNMoney reports.

The court found DaimlerChrysler liable for US$280 million of the
punitive damages, with the remaining US$70 million asserted
against Freightliner, reports say.  The Oregon Court found that
Freightliner transferred assets between its divisions in an
effort to avoid a legal judgment.

The U.S. Court's ruling follows a British Court order handed
down last year compelling Freightliner to pay approximately
US$489 million to German truck maker MAN AG, CNNMoney adds.

DaimlerChrysler intends to appeal the jury ruling.  A company
spokeswoman has reiterated that Freightliner had never sought to
hide assets from MAN.

                     About Freightliner LLC

Headquartered in Portland, Ore., Freightliner LLC --
http://www.freightliner.com/-- is a medium- and heavy-duty  
truck manufacturer in North America.  Freightliner produces and
markets Class 3-8 vehicles and is a company of DaimlerChrysler.

                     About DaimlerChrysler

Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,   
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.  
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant  price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.

                           Outlook

As reported in the TCR-Europe on Oct. 30, DaimlerChrysler said
it expects a slight decrease in worldwide demand for automobiles
in the fourth quarter and thus slower market growth than in Q4
2005.  For full-year 2006, the company anticipates market growth
of around 3%.  It expects unit sales in 2006 to be lower than in
the previous year (4.8 million units).

On Sept. 15, DaimlerChrysler reduced the Group's operating-
profit target for 2006 to an amount in the magnitude of US$6.3
billion.  Although the company now has to assume that the profit
contribution from EADS will be US$0.3 billion lower than
originally anticipated because of the delayed delivery of the
Airbus A380, DaimlerChrysler is maintaining this earnings target
due to very positive business developments in the divisions
Mercedes Car Group, Truck Group and Financial Services.


DAS SITZT: Deadline for Submission of Claims Set Dec 27
-------------------------------------------------------
Creditors of Das Sitzt Lederpolstermoebel GmbH have until
Dec. 27 to register their claims with court-appointed
provisional administrator Peter Baumgarte.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Jan. 23, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hanover
         Hall 226
         2nd Floor
         Office Building
         Hamburg Avenue 26
         30161 Hanover
         Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Hanover opened bankruptcy proceedings
against Das Sitzt Lederpolstermoebel GmbH on Oct. 20.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The administrator can be reached at:

         Peter Baumgarte
         Lange-Hop-Strasse 158
         30539 Hannover
         Tel: 0511/954750
         Fax: 0511/9547599

The Debtor can be reached at:

         Das Sitzt Lederpolstermoebel GmbH
         Opelstr. 36-40
         30916 Isernhagen
         Germany


DOMUS SULTAN: Credit Must Register Claims by Dec. 23
----------------------------------------------------
Creditors of Domus Sultan Verwaltungsgesellschaft mbH have until
Dec. 23 to register their claims with court-appointed
provisional administrator Norbert Kruse.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Jan. 15, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Muenster
         Meeting Room 13 B
         Gerichtsstr. 2-6
         48149 Muenster
         Germany      
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Muenster opened bankruptcy proceedings
against Domus Sultan Verwaltungsgesellschaft mbH on Nov. 8.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The administrator can be reached at:

         Norbert Kruse
         Bonhoefferstr. 10
         48282 Emsdetten
         Germany

The Debtor can be reached at:

         Domus Sultan Verwaltungsgesellschaft mbH
         Siemensstr. 4
         48341 Altenberge
         Germany


E-MAC DE 2006-II: Fitch Rates EUR3.5-Mln Class F Notes at BB+
-------------------------------------------------------------
Fitch Ratings assigned final ratings to E-MAC DE 2006-II B.V's
mortgage-backed securities:

   -- EUR151.0 million Class A1 due 2048 (ISIN XS0276932539):
      'AAA';

   -- EUR465.7 million Class A2 due 2058 (ISIN XS0276933347):
      'AAA';

   -- EUR35.0 million Class B due 2058 (ISIN XS0276933859):
      'AA-';

   -- EUR.24.5 million Class C due 2058 (ISIN XS0276934667):
      'A-';

   -- EUR14.0 million Class D due 2058 (ISIN XS0276935045):
      'BBB';

   -- EUR9.8 million Class E due 2058 (ISIN XS0276936019):
      'BBB-'; and

   -- EUR3.5 million Class F due 2058 (ISIN XS0276936951):
      'BB+',

The final ratings are based on the quality of the collateral and
available credit enhancement and excess spread.  The ratings
also take into account the transaction's sound legal structure,
the underwriting and servicing of the mortgage loans and the
available liquidity facility.  At closing, credit enhancement,
provided by subordination and a reserve fund, totals 12.4% for
the Class A1 and A2 notes, 7.4% for the Class B notes, 3.9% for
the Class C notes, 1.9% for the Class D notes and 0.5% for the
Class E notes.  The Class F notes, accounting for 0.5% of the
notes' balance at closing, fund the initial balance of the
reserve fund.  After closing, the reserve fund increases to 1.2%
of the initial mortgage balance through excess spread.

In this EUR700 million transaction, GMAC-RFC originated the
residential mortgage loans on behalf of GMAC-RFC Investments
B.V.  The assignment of title and security rights becomes
effective upon the delivery of the mortgage certificates to
Kreditwerk Hypotheken-Management GmbH (rated 'RPS 3+D'), which
holds them on behalf of the issuer.  Stichting Security Trustee
E-MAC DE 2006-II holds the claims against the issuer on behalf
of the noteholders.

The portfolio consists of 100% first-ranking fixed-rate
mortgages secured on residential properties located in Germany.
As of the cut-off date, Nov. 1, 2006, the provisional portfolio
consisted of 4,686 mortgage loan parts originated by GMAC-RFC
with a current total outstanding nominal amount of approximately
EUR550.1 million, ramping up to a maximum amount of EUR700
million.  The weighted average current loan-to-market value of
the portfolio is 98.1% while the weighted average debt-to-income
ratio is about 33.1%.

This is the first E-MAC DE transaction to include the disbursed
parts of partially disbursed loans.  The non-disbursed part,
totaling EUR100 million, will be held in a construction loan
account.  To mitigate, for example, construction risk (such as
the default of a builder), a dedicated reserve is in place.

Fitch applied its German residential mortgages default model.  
Fitch also modeled the cash-flow contribution from any excess
margin using stress scenarios determined by its default model.  
The cash-flow test showed that each Class of rated certificates
could withstand loan losses at a level corresponding to the
related stress scenario without incurring any principal loss or
temporary interest shortfall.


EGO ELEKTRO: Claims Filing Period Ends December 27
--------------------------------------------------
Creditors of EGO Elektro Grosshandel Ochtrup GmbH &
Co.Kommanditgesellschaft have until Dec. 27 to register their
claims with court-appointed provisional administrator Andreas
Sontopski.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Jan. 16, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Muenster
         Meeting Room 13 B
         Gerichtsstr. 2-6
         48149 Muenster
         Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Muenster opened bankruptcy proceedings
against EGO Elektro Grosshandel Ochtrup GmbH &
Co.Kommanditgesellschaft, Brookkamp 2, 48607 Ochtrup on Oct. 30.  
Consequently, all pending proceedings against the company have
been automatically stayed.

The administrator can be reached at:

         Andreas Sontopski
         Gnoiener Platz 1
         48493 Wettringen
         Germany

The Debtor can be reached at:

         EGO Elektro Grosshandel Ochtrup GmbH &
         Co.Kommanditgesellschaft
         Brookkamp 2
         48607 Ochtrup
         Germany


GELDILUX-TS-2005: Fitch Affirms Low-B Ratings on 6 Note Classes
---------------------------------------------------------------
Fitch Ratings affirmed GELDILUX-TS-2005 S.A.'s floating-rate
notes due December 2012:

   * Series 1

      -- EUR2.10 billion Class A (ISIN XS0221114696): 'AAA'
      -- EUR36.3 million Class B (ISIN XS0221115743): 'A'
      -- EUR25.3 million Class C (ISIN XS0221116634): 'BBB'
      -- EUR11 million Class D (ISIN XS0221116980): 'BB'
      -- EUR4.4 million Class E (ISIN XS0221117442): 'B'

   * Series 2

      -- EUR1.24 billion Class A (ISIN XS0221120156): 'AAA'
      -- EUR21.45 million Class B (ISIN XS0221120826): 'A'
      -- EUR14.95 million Class C (ISIN XS0221121477): 'BBB'
      -- EUR6.5 million Class D (ISIN XS0221121980): 'BB'
      -- EUR2.6 million Class E (ISIN XS0221122442): 'B'

   * Series 3

      -- EUR1.9 million Class A (ISIN XS0221125114): 'AAA'
      -- EUR33 million Class B (ISIN XS0221126195): 'A'
      -- EUR23 million Class C (ISIN XS0221127326): 'BBB'
      -- EUR10 million Class D (ISIN XS0221127912): 'BB'
      -- EUR4 million Class E (ISIN XS0221128647): 'B'.

The affirmations reflect the transaction's stable performance to
date.  Only one loan is currently in default (defined as
delinquent for 30 days or more), representing approximately
0.01% of the total portfolio balance.  One further loan had
previously defaulted (0.016% of the portfolio), but has since
been worked-out without any loss.  As of the November 2006
investor report, there are currently no delinquencies (due
payments outstanding between one and 29 days).  The portfolio is
currently made up of 0.13% of loans rated 8, 9, 10/Z (the lowest
rating categories on Bayerische Hypo-und Vereinsbank AG's
internal rating scale).

Currently 30.8% of the portfolio is secured.  The weighted
average collateralization ratio of the initial portfolio is
27.8%.  The minimum percentage is 25%. The portfolio has an
average remaining term of 63 days compared to a maximum average
remaining term of 90 days.  The largest regional concentration
is in Bavaria: 46.1% compared to 45.5% at closing.  The largest
industry concentration is the real-estate sector, totaling 28.3%
compared to 38.7% at closing.

The loans pay interest on a fixed basis and the issuer has
entered into an interest-rate swap agreement with HVB Banque
Luxembourg to enable the payment of Euribor on the issued notes.
In addition, the issuer has entered into a currency swap
agreement, as a bucket equivalent up to EUR1.8 billion is
denominated in Swiss francs.  Currently 22.5% of loans are
denominated in Swiss francs.

The transaction is a true-sale securitization of short-term
loans to German residents.  

Geldilux-TS-2005 SA is a special purpose vehicle incorporated
under the laws of the Grand Duchy of Luxembourg.  The proceeds
from the note issuance were used to purchase a EUR5.5 billion
portfolio of Euroloans originated and serviced by HVB on behalf
of the seller, HVB Lux.


HTE UNTERNEHMENSGRUPPE: Claims Registration Ends Dec. 27
--------------------------------------------------------
Creditors of HTE Unternehmensgruppe Grundstuecks- und
Verwaltungsgesellschaft mbH have until Dec. 27 to register their
claims with court-appointed provisional administrator Ulrike
Hoge-Peters.

Creditors and other interested parties are encouraged to attend
the meeting at 10:20 a.m. on Feb. 7, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt/Main
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main
         Germany    
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Frankfurt/Main opened bankruptcy
proceedings against HTE Unternehmensgruppe Grundstuecks- und
Verwaltungsgesellschaft mbH on Nov. 3.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The administrator can be reached at:

         Ulrike Hoge-Peters
         Cronstettenstrasse 30
         D-60322 Frankfurt am Main
         Germany
         Tel: 069/9591100
         Fax: 069/95911012

The Debtor can be reached at:

         HTE Unternehmensgruppe Grundstuecks- und
         Verwaltungsgesellschaft mbH
         Zeilweg 13
         60439 Frankfurt am Main
         Germany


IKB PROMISE-I: Moody's Assigns Ba1 Rating on Class E Notes
----------------------------------------------------------
Moody's Investors Service assigned these ratings to the debt
issuance of Promise-I Mobility 2006-1 GmbH:

   -- Super Senior Swap, 89.98% of the total protected notional
      amount: Aaa;

   -- Class A+ Floating Rate Credit Linked Notes, 0.02% of the
      total protected notional amount: Aaa;

   -- Class A Floating Rate Credit Linked Notes, 2.80% of the
      total protected notional amount: Aaa;

   -- Class B Floating Rate Credit Linked Notes, 0.90% of the
      total protected notional amount: Aa2;

   -- Class C Floating Rate Credit Linked Notes, 1.50% of the
      total protected notional amount: A2;

   -- Class D Floating Rate Credit Linked Notes, 1.95% of the
      total protected notional amount: Baa2; and

   -- Class E Floating Rate Credit Linked Notes, 0.45% of the
      total protected notional amount: Ba1.

The Class F Floating Rate Credit Linked Notes, 2.40% of the
total protected notional amount, will also be issued.  These
were not rated by Moody's.

The Notes have a scheduled maturity date in March 2015.  These
ratings address the expected loss posed to investors by the
legal final maturity date of the Notes in March 2017.

Under this transaction, IKB Deutsche Industriebank AG buys
protection against losses incurred on EUR- and non-EUR
denominated loans to predominantly German SME borrowers
(including syndicated loans and sub-participations as well as
real estate lease refinancing and forfeiting), which were
granted by IKB pursuant to its credit and collection policies.
Protection is bought from Kreditanstalt fur Wiederaufbau (KfW)
with respect to each tranche.  KfW in turn sells credit-linked
certificates of indebtedness to the issuer for each mezzanine
Class.

The initial amount of the reference portfolio is
EUR1,699,795,481.  However, the pool can be ramped up to the
replenishment cap of EUR2.4 bn which is scheduled to be done
with the outstanding loans from a clean up call of the Promise I
2000-1 transaction.  The initial pool consists of 1009 reference
claims belonging to 555 different debtor groups.

Replenishment is permitted during the first 4 years of the
transaction under the constraint of stringent replenishment
criteria such as concentration limits and Moody's CDOROM test.
Furthermore, the breach of certain replenishment triggers leads
to a temporary suspension or permanent termination of
replenishment.  However, if suspension trigger breaches are
cured, replenishment may resume.  Essentially, the replenishment
suspension and termination triggers relate to realized losses,
defaults and weighted average life of the reference pool.  For
replenishment the portfolio will have a weighted average IKB
rating of at least 2.35.

Moody's ratings for Promise-I Mobility 2006-1 GmbH, a German
issuer, are based primarily on:

   (1) The credit quality and debtor composition of the
       reference pool, for which IKB's credit and collection
       policies were reviewed and internal ratings mapped to the
       Moody's scale based on a representative sample of
       debtors;

   (2) The Aaa rating of KfW as the Issuer of credit linked
       certificates of indebtedness (Schuldscheine) serving as
       note collateral;

   (3) The replenishment suspension and termination triggers
       incorporated in the transaction;

   (4) The sound legal structure of KfW's established Promise
       programme; and

   (5) The credit enhancement provided to the notes by the
       subordination of the more junior tranches.


PS-LEASING GMBH: Creditors Must Register Claims by Dec. 27
----------------------------------------------------------
Creditors of PS-Leasing GmbH have until Dec. 27 to register
their claims with court-appointed provisional administrator
Jochen Schnake.

Creditors and other interested parties are encouraged to attend
the meeting at 8:30 a.m. on Jan. 17, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bielefeld
         Hall 4065
         4th Floor
         Court Route 6
         33602 Bielefeld
         Germany      
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Bielefeld opened bankruptcy proceedings
against PS-Leasing GmbH on Nov. 3.  Consequently, all pending
proceedings against the company have been automatically stayed.

The administrator can be reached at:

         Jochen Schnake
         Ravensberger Str. 11 u. 12
         33824 Werther
         Germany

The Debtor can be reached at:

         PS-Leasing GmbH
         Friedrich-Verleger-Str. 3
         33602 Bielefeld
         Germany


QUELLENTHERME SERVICE: Claims Registration Ends Dec. 27
-------------------------------------------------------
Creditors of Quellentherme Service GmbH have until Dec. 27 to
register their claims with court-appointed provisional
administrator Reinhard Bohlig.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Feb. 7, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Fritzlar
         Room 17
         Building A
         Schladenweg 1
         34560 Fritzlar
         Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Fritzlar opened bankruptcy proceedings
against Quellentherme Service GmbH on Nov. 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The administrator can be reached at:

         Reinhard Bohlig
         Briloner Landstrasse 14
         34497 Korbach
         Germany
         Tel: 05631/950970
         Fax: 05631/950919

The Debtor can be reached at:

         Quellentherme Service GmbH
         Reitzenhagener Strasse 15
         34537 Bad Wildungen
         Germany


RAHE BAUTEC: Creditors Must File Claims by Dec. 27
--------------------------------------------------
Creditors of RAHE bautec GmbHG have until Dec. 27 to register
their claims with court-appointed provisional administrator
Jochen Schnake.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Jan. 17. 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bielefeld
         Hall 4065
         4th Floor
         Court Route 6
         33602 Bielefeld
         Germany      
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Bielefeld opened bankruptcy proceedings
against RAHE bautec GmbHG on Oct. 25.  Consequently, all pending
proceedings against the company have been automatically stayed.

The administrator can be reached at:

         Jochen Schnake
         Ravensberger Str. 11 u. 12
         33824 Werther
         Germany

The Debtor can be reached at:

         RAHE bautec GmbHG
         Grafenheider Str. 11
         33729 Bielefeld
         Germany


SHOPPING-SERVICES 4 U: Claims Registration Ends Dec. 27
-------------------------------------------------------
Creditors of shopping-services 4 U GmbH have until Dec. 27 to
register their claims with court-appointed provisional
administrator Ulrich Maschmann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:45 a.m. on Jan. 17, 2007, at which time the
administrator will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Wiesbaden
         E 36 A
         3rd Floor
         Building E
         Moritzstrasse 5
         Hinterhaus
         65185 Wiesbaden
         Germany
         
The Court will also verify the claims set out in the
administrator's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The District Court of Wiesbaden opened bankruptcy proceedings
against shopping-services 4 U GmbH on Oct. 26.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The administrator can be reached at:

         Ulrich Maschmann
         Martha-von-Opel-Weg 9
         65307 Bad Schwalbach
         Tel: 06124/70670
         Fax: 06124/706720

The Debtor can be reached at:

         shopping-services 4 U GmbH
         Berliner Str. 275
         65205 Wiesbaden
         Germany


TUI AG: Eyes 3,600 Job Cuts at Tourism Division
-----------------------------------------------
TUI AG intends to cut 3,600 jobs, representing six percent of
its work force, at its tourism division as part of its cost-
cutting measures, Bloomberg News reports.

According to the report, TUI will eliminate 2,600 jobs in the
U.K., 400 in Germany and 200 in France.

In a statement, TUI said it is selling a harbor terminal in
Montreal, several small vessels owned by its CP Ships unit and
properties not needed for the operating business.  The travel
company added that it intends to boost sales by upgrading its
air fleet, adding hotels and expanding Internet bookings.

According to BBC News, TUI had ordered 65 Boeing aircraft in a
deal worth about EUR2 billion.

TUI will also merge its German low-cost airlines and explore
"further strategic options" for the carriers.

The company expects a decline in earnings this year due to
higher costs in the shipping division and stagnant tourism
revenues.  The profitability of the shipping division was
adversely affected by lower freight rates and surging fuel
prices.

The company has lowered its 2008 earnings forecast for both the
tourism and shipping divisions.

The company is targeting a EUR250 million reduction in its
annual expenses in the next two years, EUR100 million of which
will be personnel costs.  By 2008, it aims to cut net debt to
EUR2.5 billion (US$3.3 billion) from EUR2.9 billion in September
this year, Bloomberg relates.

                           About TUI

Headquartered in Hanover, Germany, TUI AG --
http://www.tui-group.com/en-- engages in the tourism and
shipping sectors.   The Company's core activities are in the
tourism business, focusing mainly on the markets of Central,
Northern and Western Europe.  TUI AG's shipping and logistics
activities are contained within its Hapag-Lloyd Container Linie
GmbH and CP Ships Ltd. subsidiaries.

                        *     *     *

As reported in the TCR-Europe on Nov. 15, Standard & Poor's
Ratings Services lowered its long-term corporate credit rating
on Germany-based shipping and tourism group TUI AG to 'BB' from
'BB+', owing to its weakening operating results.  S&P said the
outlook is negative.

In August 2006, Moody's Investors Service placed on review for
possible downgrade the Ba2/B1 ratings of TUI AG as a result of
the company's announcement that the Shipping division's full-
year earnings for 2006 will be impacted by higher operating
costs and lower-than-expected freight rates.

The ratings affected by the review are TUI's Ba2 Corporate
Family Rating, the Ba2 Senior Unsecured Long-Term ratings, and
the B1 Subordinated ratings.


===========
G R E E C E
===========


YIOULA GLASSWORKS: Moody's Affirms B3 Rating on EUR140-Mln Notes
----------------------------------------------------------------
Moody's Investors Service changed the outlook to negative from
stable on the Corporate Family Rating of Yioula Glassworks S.A.
and affirmed the B2 CFR as well as the B3 rating for the
EUR140-million senior notes due in 2015.  The last rating action
was Nov. 10, 2005, when the ratings were assigned following the
bond issuance.

"The change in outlook to negative reflects the weakened
profitability due to rising input costs, most notably natural
gas, and also increased leverage as a consequence of higher
investments into its asset base in Romania, Bulgaria and the
Ukraine ", said Martin Kohlhase, Moody's lead analyst for the
European packaging industry.

This expansion into its asset base with expected peak capital
expenditures in 2006 of more than EUR40 million and additional
expenditure of EUR30 million in 2007, is expected to result in
negative free cash flow for the forthcoming fiscal year.
Furthermore, the efficiency and profitability improvements,
which the company expects to achieve with these investments over
the next couple of years, are offset to some extent by:

    (i) a shift towards countries with a more volatile and
        higher operating risk environment and

   (ii) at least during the initial stage the implementation
        risk of capital expenditures of this magnitude.

The rating agency also believes that the growing shift towards
countries outside of the domestic market will put additional
pressure on management.  Any indication that the risk factors
such as the above described should materialize could put
pressure on the rating.  On the other hand, ongoing
rationalization and cost benefits from a more efficient asset
base in line with company expectation should bring Yioula's
credit metrics (EBIT margin in the high teens and positive free
cash flow) in line with the B2 rating category over the next
twelve to 18 months.

Headquartered in Athens, Greece, Yioula Glassworks S.A. produces
a wide variety of glass containers for the food and beverage
industries throughout southeastern Europe and the Ukraine as
well as glass tableware for the Greek and Romanian markets.
Revenues for the nine months ended Sept. 30, 2006, were
EUR155.4 million.


=============
H U N G A R Y
=============


ACTUANT CORP: Earns US$25.2 Million in 2006 Fourth Quarter
----------------------------------------------------------
Actuant Corporation reported record sales and earnings for its
fourth quarter and fiscal year ended Aug. 31, 2006.

Fourth quarter fiscal 2006 net earnings was US$25.2 million,
compared to US$19.1 million for the fourth quarter of fiscal
2005.  Fiscal 2006 fourth quarter results include a US$4.9
million pre-tax charge covering a portion of the company's
restructuring of its European electrical business, offset by a
US$5.4 million income tax benefit primarily related to the
reversal of a tax valuation allowance for net operating losses.  

Net earnings for fiscal 2006 were US$92.6 million compared to
US$71.3 million for the prior year.  

Fourth quarter sales increased approximately 21% to US$324.6
million compared to US$269.4 million in the prior year, driven
by strong base business growth and sales from acquired
businesses.  Excluding foreign currency exchange rate changes
and sales from acquired businesses, fourth quarter sales
increased approximately 13% from the comparable prior year
period.  Sales for the fiscal year ended Aug. 31, 2006, were
US$1.2 billion, approximately 23% higher than the US$976 million
in the comparable prior year period, reflecting sales volume
added through business acquisitions and strong base business
growth.  Excluding the impact of foreign currency rate changes
and sales from acquired businesses, full year sales increased 9%
year-over-year.

Commenting on the results, Robert C. Arzbaecher, Chief Executive
Officer, stated, "Actuant finished fiscal 2006 strongly, driving
another quarter of significant year-over-year sales and earnings
growth.  The continued profitable growth in our industrial tools
businesses, Enerpac and Hydratight, led the record results.
Additionally, as expected, automotive business revenues grew 63%
for the quarter on sales related to new convertible model
introductions."

Mr. Arzbaecher added, "We are very happy with Actuant's progress
in fiscal 2006 as we continued to execute our business model to
drive strong cash flow and earnings growth.  Our team achieved
9% sales growth excluding currency and acquisitions, deployed
approximately US$129 million in aggregate on acquisitions that
strengthened our existing business, and continued to drive LEAD
(Lean Enterprise Across Disciplines) and organizational
competency throughout the business.  Fiscal 2006's 21% EPS
growth was the fifth consecutive year of EPS growth in excess of
15% since Actuant's creation through a spin-off.  We were also
able to convert those strong earnings into cash, generating over
US$100 million of cash flow, which was again in excess of net
income."

Net debt at Aug. 31, 2006, was approximately US$455 million,
compared to US$460 million at the beginning of the quarter.  The
reduction in net debt during the quarter was attributable to
fourth quarter cash flow of approximately US$29 million,
partially offset by the US$24 million of borrowings to fund the
August 2006 Actown acquisition.  Availability under the
company's revolving credit facility remained strong at
approximately US$170 million as of Aug. 31, 2006.

Year-over-year, Actuant's fiscal 2006 fourth quarter and full
fiscal year operating profit increased to US$38.2 million and
US$154.1 million, respectively, including the fourth quarter
European Electrical restructuring charge of US$4.9 million.  
Year-over-year fourth quarter operating profit margins expanded
from 13.1% to 13.3%, excluding the negative impact of the
restructuring charge in fiscal 2006.  

At Aug. 31, 2006, the company's consolidated balance sheet
showed US$1.2 million in total assets, US$850,410 in total
liabilities, and US$362,965 in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Aug. 31, 2006, are available for
free at http://researcharchives.com/t/s?1730

                     About Actuant Corporation

Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU)
-- http://www.actuant.com/-- is a diversified industrial  
company with operations in more than 30 countries, including
Austria, Hungary, Poland, Italy, Spain, the Netherlands, France,
Russia, Turkey, Germany, and the United Kingdom.  The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies.  Since its creation through a spin-off in
2000, Actuant has grown its sales from USUS$482 million to over
USUS$1 billion and its market capitalization from USUS$113
million to over USUS$1.5 billion.  The company employs a
workforce of approximately 6,000 worldwide.  Actuant Corporation
trades on the NYSE under the symbol ATU.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 24,
Moody's Investors Service affirmed its Ba2 corporate family
rating for Actuant Corp.


=============
I R E L A N D
=============


AFFILIATED COMPUTER: Identifies US$51MM Addt'l. Non-Cash Expense
----------------------------------------------------------------
Affiliated Computer Services Inc. determined that the
incremental cumulative non-cash compensation expense through
June 30, 2006, related to incorrect accounting measurement dates
is approximately US$51 million and that prior year financial
statements will be restated.

The determination was arrived at after it has completed the
review and evaluation of the results of its internal
investigation of its historical stock option practices.

The company is currently reviewing the tax impact, including
related interest and penalties, associated with stock options
and other matters.

The company's management made on Dec. 7, 2006, a presentation of
its determination to the audit committee of its board of
directors who concurred with and approved management's
determination.

Previously, the company disclosed that it was continuing to
review and evaluate the results of the internal investigation
and recent accounting guidelines established by the Securities
and Exchange Commission to determine the accounting consequences
of the use of incorrect measurement dates for certain stock
option grants during the period from 1994 through 2005.

The company's management is also currently evaluating the impact
of the results of the internal investigation of its stock option
practices on its internal control over financial reporting and
disclosure controls and procedures.

The company's management has already discussed the matter with
the Audit Committee and PricewaterhouseCoopers LLP, the
company's independent registered public accounting firm.

Headquartered in Dallas, Texas, Affiliated Computer Services,
Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides  
business process outsourcing and information technology
solutions to commercial and government clients.  The company has
global operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland and Singapore.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Nov. 30,
Standard & Poor's Ratings Services kept its ratings for
Affiliated Computer Services Inc. including the 'B+' corporate
credit rating, on CreditWatch, where they were placed with
negative implications on Sept. 29, 2006.

As reported in the TCR-Europe on Oct. 4, Moody's Investors
Service placed the Ba2 ratings of Affiliated Computer Services
on review for possible downgrade.  The review for downgrade was
prompted by the company's ongoing independent investigation into
historical stock option practices, which has resulted in the
company's delay in filing its 10-K for its fiscal year ended
June 2006.  The company has received certain waivers from credit
facility lenders through Dec. 31 related to the options matter.

The review will examine the company's access to internal and
external sources of liquidity as well as the prospects for
filing the June 10-K and subsequent financial statements with
the SEC by Dec. 31.  As part of this review, Moody's will assess
the company's acquisition plans and contract commitments.  If
the company becomes current in the filing of its financial
statements by Dec. 31 and any restatement is unlikely to result
in a material cash outflow, the ratings will likely be confirmed
at Ba2.

Ratings Placed on Review for Possible Downgrade:

    * Ba2 Senior Secured Term Loan Rating
    * Ba2 Senior Secured Revolving Credit Facility Rating
    * Ba2 Senior Notes Rating (US$500 Million due 2010 and 2015)
    * Ba2 Corporate Family Rating


ELAN CORP: Applies for TYSABRI's Supplemental License with FDA
--------------------------------------------------------------
Elan Corp. plc and Biogen Idec submitted a supplemental
Biologics License Application to the U.S. Food and Drug
Administration seeking approval to market TYSABRI(R)
(natalizumab) in the U.S. as a treatment for patients with
moderately to severely active Crohn's disease.

The filing is based on the results of three randomized, double-
blind, placebo-controlled, multi-center trials of TYSABRI
assessing the safety and efficacy as both an induction and
maintenance therapy -- ENCORE (Efficacy of Natalizumab in
Crohn's Disease Response and Remission), ENACT-1 (Efficacy of
Natalizumab as Active Crohn's Therapy) and ENACT-2 (Evaluation
of Natalizumab As Continuous Therapy).

The filing also includes proposed labeling and a risk management
plan, both of which are similar to those approved for the
multiple sclerosis indication.

                     About the Company

Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology
company.  Elan shares trade on the New York, London and Dublin
Stock Exchanges.

                        *     *     *

As reported in the TCR-Europe on Nov. 13, Standard & Poor's
Ratings Services assigned its 'B' rating to Elan Finance plc's
proposed offering of US$500 million senior unsecured notes due
2013, to be issued in a combination of fixed and floating-rate
notes.  Elan Finance plc is a wholly owned subsidiary of Dublin,
Ireland-based specialty pharmaceutical company Elan Corp. plc.
The notes are guaranteed on a senior unsecured basis by Elan and
all of its existing material subsidiaries.

Outstanding ratings on Elan (including the 'B' corporate credit
rating) and its related entities were affirmed.  The ratings
outlook is stable.

Also, Moody's Investors Service assigned a B3 rating to the
proposed new senior unsecured notes of Elan Finance plc
reflecting a guarantee from Elan Corporation plc and material
subsidiaries.  At the same time, Moody's affirmed Elan's
existing ratings (B3 Corporate Family Rating) and the stable
rating outlook.

The rating outlook is stable.

Rating assigned:

Elan Finance plc

    * B3 fixed rate senior notes due 2013 (guaranteed by
      Elan Corporation, plc and subsidiaries)

    * B3 floating rate senior notes due 2013 (guaranteed by
      Elan Corporation, plc and subsidiaries)

Ratings affirmed:

Elan Corporation, plc

    * B3 corporate family rating

Elan Finance plc

    * B3 fixed rate senior notes of US$850 million
      due 2011 (guaranteed by Elan Corporation, plc
      and subsidiaries)

    * B3 floating rate senior notes of US$300 million
      due 2011 (guaranteed by Elan Corporation, plc
      and subsidiaries)

Athena Neurosciences Finance, LLC

    * B3 senior notes of US$613 million due 2008 (guaranteed
      by Elan Corporation, plc and subsidiaries)

Moody's does not rate Elan's US$254 million convertible notes
due 2008.


=========
I T A L Y
=========


METSO OYJ: Injects EUR15 Million to Raise Paper Unit's Capacity
---------------------------------------------------------------
Metso Paper, a unit of Metso Oyj, is expanding the production
capacity of paper machine rolls, and will build a new production
line for big, wide castings in Jyvaskyla, Finland.  The value of
the investment is around EUR15 million.

The new production line will enable roll castings up to 12
meters in width.  The investment will also shorten the lead
times and improve occupational safety at the foundry.  The
demand for wide paper machines has developed favorably in recent
years.

In addition to new paper machines, rolls are needed in the
modernizations and rebuilds of the installed machines. Large
paper machine rolls are one of the most demanding components in
a paper machine.  Metso Paper has developed the manufacturing
know-how and machinery in the Jyvaskyla plant over a number of
years to meet the needs of roll manufacturing.

                          About Metso

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- serves customers in the pulp and paper
industry, rock and minerals processing, the energy industry and
selected other industries.

The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.

                        *     *     *

As reported in the TCR-Europe on April 11, Standard & Poor's
Ratings Services revised its outlook on Finland-based machinery
and engineering group Metso Corp. to positive from stable,
reflecting improvements in the group's operating performance and
capital structure that offer it the potential to return to a low
investment-grade rating.  The 'BB+' long-term and 'B' short-term
corporate credit ratings, as well as the 'BB' senior unsecured
debt rating on the group were affirmed.


TK ALUMINUM: Posts EUR22-Mln 3Q Loss; May Breach Bond Covenant
--------------------------------------------------------------
TK Aluminum Ltd. released its financial results for the third
quarter and nine months ended Sept. 30, 2006.

The company reported EUR22 million in net losses against
EUR243.5 million in revenues for the third quarter of 2006,
compared with EUR9 million in net losses against EUR229 million
in revenues for the same period in 2005.

TK Aluminum posted EUR35.7 million in net losses against
EUR799.8 million in revenues for the third quarter of 2006,
compared with EUR40.9 million in net loss against EUR747.4
million in revenues for the same period in 2005.

"Our results continue to be adversely affected by the
challenging automotive environment," reported Jake Hirsch, CEO
of Teksid Aluminum, said.  "However, we have made significant
progress in supporting the Company and shareholder strategy with
respect to the anticipated business model.  In addition to the
previously announced definitive agreement to sell certain assets
to Nemak, we also can now announce the execution of a non-
binding letter of intent to sell the Company's interest in
France, Italy and Germany to one or more affiliates of BAVARIA
Industriekapital AG."

                        Tender Offer

Concurrently, and in support of that strategy, the Company is
pursuing additional sources of liquidity and announcing the
termination of the Tender Offer and Consent Solicitation.

"We decided to proactively seek to access the debt market in an
effort to strengthen the Company's capital structure, and obtain
greater financial flexibility and additional liquidity prior to
the sale of certain assets to Nemak and BAVARIA," Jon Smith,
Interim Chief Financial Officer of Teksid Aluminum, said.  "The
Company is currently examining its options with respect to the
terms of the Tender Offer and Consent Solicitation and intends
to recommence an offer on terms and conditions to be
determined."

               Liquidity and Covenants Compliance

The company has historically funded its working capital needs,
capital expenditures and debt service requirements with cash
flows from operations and existing cash resources, including
borrowings under our Senior Credit Facility and proceeds from
the sale of receivables under our current factoring
arrangements.  

As of Nov. 30, 2006, the company had cash and cash reserves of
EUR25 million plus available factoring lines of EUR41 million
and has utilized our availability under its Senior Credit
Facility.

The Company was in full compliance with the financial covenants
of its Senior Credit Agreement and with its Second Lien
Agreement with respect to the period ended Sept. 30, 2006.  

                     Covenant Default

However, the company is currently in default of certain non-
financial covenants under the Senior Credit Facility and Second
Lien Facility owing to failure to notify the lenders prior to
certain amendments to the organizational documents of certain of
its subsidiaries.  It also failed to provide the lenders with a
perfected security interest in its Argentine assets within the
time period specified in the Senior Credit Facility and Second
Lien Facility.

The company is in discussions with the agents to the lenders
under such facilities to waive the defaults.  There can be no
assurance that the company will be able to obtain a waiver on
terms acceptable, or at all.  In addition, the company expects
that it may not comply with the financial covenants in our
Senior Credit Facility and Second Lien Facility for the quarter
ending Dec. 31, 2006.

Following a failure to comply with these financial covenants,
any available borrowings under the Senior Credit Facility would
not be permitted without agreement from our lenders.  In
addition, following the failure to comply, the senior and second
lien lenders would have the ability to exercise all of their
rights including requiring the amounts due under the Senior
Credit Facility and Second Lien Facility to become due and
payable.  In the event of acceleration under such facilities,
bondholders would be entitled to declare the aggregate principal
and unpaid interest outstanding under the senior notes to be due
and payable pursuant to the cross default provisions of the
senior notes indenture.

"In order to assure sufficient access to capital to fund
operations in the near term, the company is exploring a variety
of options to improve our near term liquidity," the company
said.  "We have obtained definitive commitments from certain
customers related to favorable payment terms and the company is
negotiating with a third party to provide the Company with a
loan to be used to fund the Company's liquidity needs."

In addition, the consummation of the Nemak transaction will
provide cash, which will be used to repay a portion of our
outstanding debt obligations.  The deterioration of the
automotive market, unfavorable foreign exchange movements, and
new third party financing will adversely affect the amount of
funds available for the repurchase of our Senior Notes, which
was contemplated at the time of announcement of the Nemak
transaction.

As previously announced, the consummation of the Nemak
transaction is subject to various conditions, including the
receipt of certain consents and waivers from our bondholders and
other customary conditions, including regulatory approvals.   
There can be no assurance that we will be successful in
obtaining additional capital resources or that the Nemak
transaction will be consummated within the time period necessary
to provide us with sufficient liquidity to fund operations, or
at all.  Should the Nemak transaction not be consummated, and
the Company is not successful in obtaining additional third
party financing, the Company intends to pursue all available
options in light of its liquidity needs.

Headquartered in Turin, Italy, TK Aluminum Ltd. --
http://www.teksidaluminum.com/-- manufactures light metal  
castings for the automotive industry.  The company's core
products are cylinder heads and blocks, and transmission and
suspension components produced with a wide range of
technologies: semipermanent mold gravity casting, high-pressure
die casting, low pressure, precision sand core and lost foam.

The company also operates in France, Poland, U.S.A., Mexico,
Brazil, Argentina and China.

                        *     *     *

As reported in the TCR-Europe on Nov. 8, Standard & Poor's
Ratings Services placed its 'CCC+' long-term corporate credit
rating on Bermuda-incorporated TK Aluminum Ltd. on CreditWatch
with developing implications, meaning that the rating could be
raised, lowered, or affirmed.

As reported in the TCR-Europe on Nov. 7, Moody's Investors
Service placed the Caa1 Corporate Family Rating of Teksid
Aluminum Ltd. and the Caa3 senior unsecured rating of Teksid
Aluminum Luxembourg Sarl SCA on review with an uncertain
direction, following the company's announcement that it has
entered into a definitive agreement to sell certain core assets
to Tenedora Nemak, S.A. de C.V and the intention of a redemption
of outstanding debt with the proceeds of the asset disposal.

On Review Direction Uncertain:

Issuer: TK Aluminum Ltd.

    * Corporate Family Rating, currently Caa1

Issuer: Teksid Aluminum Luxembourg Sarl SCA

    * Senior Unsecured Regular Bond/Debenture, currently Caa3

Outlook Actions:

Issuer: TK Aluminum Ltd.

    * Outlook, Changed To Rating Under Review From Negative

Issuer: Teksid Aluminum Luxembourg Sarl SCA

    * Outlook, Changed To Rating Under Review From Negative


TK ALUMINUM: S&P Cuts Rating to CCC- on Possible Covenant Breach
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating to 'CCC-' from 'CCC+' on Bermuda-
incorporated TK Aluminum Ltd., a manufacturer of
aluminum auto parts.  

The rating remains on CreditWatch with developing implications,
where it was placed on Nov. 6, 2006.  The developing
implications mean that the rating could be raised, lowered, or
affirmed.

"The downgrade follows the company's announcement that it may
not be in compliance with the financial covenants on its senior
and second-lien credit facilities at Dec. 31, 2006," said
Standard & Poor's credit analyst Barbara Castellano.

TKA is actively negotiating to increase its near-term liquidity
sources.  The tender offer for the senior notes due in 2011 has
been terminated unsuccessfully, and a new tender offer for these
notes should be launched shortly.  This delay could be reflected
in the closure date of TKA's deal to sell its operations in
North and South America, China, and Poland to Tenedora
Nemak S.A. de C.V., thereby increasing liquidity needs to
sustain operating activity for a longer period of time.

"We are now concerned that TKA might not respect the payments
contractually due on its financial debt, and that there is
increasing risk of a solution that would include agreements to
either reduce or postpone the scheduled payments, which would
trigger a default according to our criteria," said Ms.
Castellano.

TKA has also announced the execution of a non-binding letter of
intent to sell its assets in France, Italy, and Germany to
BAVARIA Industriekapital AG.  If such deal is completed, TKA
will have sold all of its operating activities.

TKA's net financial debt for the nine months ended Sept. 30,
2006, totaled about EUR540 million, adjusted for leases and
pension liabilities.


===================
K A Z A K H S T A N
===================


ALEXANDRIT HOLDING: Claims Filing Period Ends Jan. 24, 2007
-----------------------------------------------------------
LLP Alexandrit Holding has declared insolvency.  Creditors have
until Jan. 24, 2007, to submit written proofs of claim to:

         LLP Alexandrit Holding
         Mostovaya Str. 22-8         
         Micro District Chubary
         Almaty District
         Astana
         Kazakhstan


ALTAISERVICECENTRE LLP: Court Commences Bankruptcy Proceedings
--------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region commenced bankruptcy proceeding against LLP
Altaiservicecentre on Nov. 16, 2006.


BAIMURAT LLP: Kostanai Court Declares Firm Insolvent
----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai Region
declared LLP Baimurat insolvent.

The Debtor can be contacted at 8 (3142) 22-02-93 or 26-62-66.


CINEMA INVEST: Claims Filing Period Ends Jan. 26, 2007
------------------------------------------------------
LLP Cinema Invest has declared insolvency.  Creditors have until
Jan. 26, 2007, to submit written proofs of claim to:

         LLP Cinema Invest         
         Micro District Astana 2
         Taugul
         Almaty
         Kazakhstanc


MURAGER LLP: Claims Filing Period Ends Jan. 26, 2007
----------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region commenced bankruptcy proceedings against LLP Murager
after finding it insolvent.

Creditors have until Jan. 26, 2007, to submit written proofs of
claim to:

         LLP Murager
         Uritsky Str. 121
         Ust-Kamenogorsk
         East Kazakhstan Region
         Kazakhstan
         Tel: 8 (3232) 25-57-62


NEWS-PRINT LLP: Claims Filing Period Ends Jan. 24, 2007
-------------------------------------------------------
LLP Publishing House News-Print has declared insolvency.
Creditors have until Jan. 24, 2007, to submit written proofs of
claim to:

         Gogol Str. 95/70
         Almaty
         Kazakhstan
         Tel: 8 (3272) 65-00-93


NITS INCOMSYSTEM: Creditors Must File Claims by Jan. 24, 2007
-------------------------------------------------------------
Kazakhstansky Branch of CJSC Nits Incomsystem has declared
insolvency.  

Creditors have until Jan. 24, 2007, to submit written proofs of
claim to:

         CJSC Nits Incomsystem
         Kazakhstansky Branch
         7 Kilometer
         Ilyiskoye High Road
         Otegen Baatyr
         Ilyisky District
         Almaty Region
         Kazakhstan


PRINCIP LLP: East Kazakhstan Court Starts Bankruptcy Proceedings
----------------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
Region commenced bankruptcy proceeding against LLP Company
Princip on Oct. 27.

The Debtor can be reached at:

         Shmidt Str. 15
         Semipalatinsk
         East Kazakhstan Region
         Kazakstan


STROY-SUPPLY-PLUS 777: Court Starts Bankruptcy Procedure
--------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda
Region commenced bankruptcy proceeding against LLP Stroy-Supply-
Plus 777.

The Debtor can be reached at:

         LLP Stroy-Supply-Plus 777
         Dovator Str. 3
         Karaganda
         Karaganda Region
         Kazakhstan


===================
K Y R G Y Z S T A N
===================


KYRGYZ SHAMPANY-KAMEKS: Creditors Meeting Slated for Dec. 25
------------------------------------------------------------
The temporary insolvency manager of Joint Venture Trade House
Kyrgyz Shampany-Kameks will convene a meeting of creditors at
10:00 a.m. on Dec. 25, at:

         Joint Venture Trade House Kyrgyz Shampany-Kameks
         Sovetskaya Str. 220
         Bishkek
         Kyrgyzstan

Creditors will be asked to confirm the final report of the
temporary insolvency manager, among others.

Proxies must have authorization to vote.  

Inquiries can be addressed to (+996 312) 62-39-69.


TECHNOLOGY ELECTRONIC: Claims Registration Ends Jan. 5, 2007
------------------------------------------------------------
LLC Technology Electronic has declared insolvency.  Creditors
have until Jan. 5, 2007, to submit written proofs of claim to:

         LLC Technology Electronic
         Tolstoi Str. 210
         Bishkek
         Kyrgyzstan


===================
L U X E M B O U R G
===================


GELDILUX-TS-2005: Fitch Affirms Low-B Ratings on 6 Note Classes
---------------------------------------------------------------
Fitch Ratings affirmed GELDILUX-TS-2005 S.A.'s floating-rate
notes due December 2012:

   * Series 1

      -- EUR2.10 billion Class A (ISIN XS0221114696): 'AAA'
      -- EUR36.3 million Class B (ISIN XS0221115743): 'A'
      -- EUR25.3 million Class C (ISIN XS0221116634): 'BBB'
      -- EUR11 million Class D (ISIN XS0221116980): 'BB'
      -- EUR4.4 million Class E (ISIN XS0221117442): 'B'

   * Series 2

      -- EUR1.24 billion Class A (ISIN XS0221120156): 'AAA'
      -- EUR21.45 million Class B (ISIN XS0221120826): 'A'
      -- EUR14.95 million Class C (ISIN XS0221121477): 'BBB'
      -- EUR6.5 million Class D (ISIN XS0221121980): 'BB'
      -- EUR2.6 million Class E (ISIN XS0221122442): 'B'

   * Series 3

      -- EUR1.9 million Class A (ISIN XS0221125114): 'AAA'
      -- EUR33 million Class B (ISIN XS0221126195): 'A'
      -- EUR23 million Class C (ISIN XS0221127326): 'BBB'
      -- EUR10 million Class D (ISIN XS0221127912): 'BB'
      -- EUR4 million Class E (ISIN XS0221128647): 'B'.

The affirmations reflect the transaction's stable performance to
date.  Only one loan is currently in default (defined as
delinquent for 30 days or more), representing approximately
0.01% of the total portfolio balance.  One further loan had
previously defaulted (0.016% of the portfolio), but has since
been worked-out without any loss.  As of the November 2006
investor report, there are currently no delinquencies (due
payments outstanding between one and 29 days).  The portfolio is
currently made up of 0.13% of loans rated 8, 9, 10/Z (the lowest
rating categories on Bayerische Hypo-und Vereinsbank AG's
internal rating scale).

Currently 30.8% of the portfolio is secured.  The weighted
average collateralization ratio of the initial portfolio is
27.8%.  The minimum percentage is 25%. The portfolio has an
average remaining term of 63 days compared to a maximum average
remaining term of 90 days.  The largest regional concentration
is in Bavaria: 46.1% compared to 45.5% at closing.  The largest
industry concentration is the real-estate sector, totaling 28.3%
compared to 38.7% at closing.

The loans pay interest on a fixed basis and the issuer has
entered into an interest-rate swap agreement with HVB Banque
Luxembourg to enable the payment of Euribor on the issued notes.
In addition, the issuer has entered into a currency swap
agreement, as a bucket equivalent up to EUR1.8 billion is
denominated in Swiss francs.  Currently 22.5% of loans are
denominated in Swiss francs.

The transaction is a true-sale securitization of short-term
loans to German residents.  

Geldilux-TS-2005 SA is a special purpose vehicle incorporated
under the laws of the Grand Duchy of Luxembourg.  The proceeds
from the note issuance were used to purchase a EUR5.5 billion
portfolio of Euroloans originated and serviced by HVB on behalf
of the seller, HVB Lux.


NORTEL NETWORKS: Amends US$750 Million Master Facility Agreement
----------------------------------------------------------------
Nortel Networks Corporation's principal operating subsidiary,
Nortel Networks Limited, has amended its master facility
agreement with Export Development Canada.  

The amendment extends the maturity date of the Facility for an
additional year to Dec. 31, 2008.

The total Facility is maintained at US$750 million, including
the existing US$300 million of committed support for performance
bonds and similar instruments.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corp
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology  
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.  
Nortel does business in more than 150 countries.

                         *     *     *

As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.


=====================
N E T H E R L A N D S
=====================


ALCATEL-LUCENT: Soliciting Consents to Amend Sr. Note Indenture
---------------------------------------------------------------
Alcatel-Lucent commenced a solicitation of consents from holders
of record as of Dec. 14, 2006, of Lucent's 2.75% Series A
Convertible Senior Debentures due 2023 and 2.75% Series B
Convertible Senior Debentures due 2025 to amend the Indenture
for the Debentures.  

The amendment would allow Alcatel-Lucent to provide the holders
of the Debentures such information, documents and other reports
that are required to be filed by the company pursuant to
sections 13 and 15(d) of the U.S. Securities Exchange Act of
1934, instead of having to produce separate information,
documents and reports for Lucent.

Under the terms of the consent solicitation, if Alcatel-Lucent
receives the required consents, the company will:

   -- issue a full and unconditional subordinated guaranty of
      the Debentures;

   -- increase the interest payable on the principal amount of
      the Debentures by 12.5 basis points per year;

   -- provide a one-time upward adjustment to the conversion
      rate to 59.7015 ADSs for each US$1,000 in principal amount
      of Series A Debentures and to 65.1465 ADSs for each
      US$1,000 principal amount of Series B Debentures; and

   -- add a provision to the Indenture that will cause an upward
      adjustment to the conversion rate upon cash dividends or
      distributions on the Alcatel-Lucent ordinary shares in
      excess of EUR0.08 per share per year.

The details regarding the terms of the consent solicitation can
be found in the consent solicitation statement/prospectus, dated
Dec. 15, 2006, which supercedes the joint solicitation
statement/prospectus and supplement dated Nov. 14, 2006, and
Nov. 27, 2006, respectively.  All holders of the Debentures who
have previously delivered consents must redeliver such consents.

The consent solicitation will expire at 1:00 p.m. Eastern Time
on Dec. 29, 2006, unless extended.  The adoption of the proposed
amendments to the Indenture requires the consent of the holders
of a majority in aggregate principal amount of each series of
Debentures.

Holders of the Debentures can obtain copies of the consent
solicitation statement/prospectus, the related letter of consent
and other related materials from D.F. King & Co., the
Information Agent, at +1 (888) 887-0082 (US toll-free) or, for
banks and brokers, +1 (212) 269-5550.

Bear, Stearns & Co. Inc. is acting as the Solicitation Agent for
the consent solicitation and can be contacted at +1 (877) 696-
BEAR (toll-free).

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable  
service providers, enterprises and governments worldwide, to
deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                           *     *     *

As reported in the TCR-Europe on Dec. 14, following the
completion of Alcatel S.A.'s merger with Lucent
Technologies Inc., at which time Alcatel was renamed Alcatel-
Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006, research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


ALCATEL-LUCENT: Inks IP Network Contract with Hawaiian Telcom
-------------------------------------------------------------
Hawaiian Telcom has selected Alcatel-Lucent's Triple Play
Service Delivery Architecture as the blueprint for network
transformation that will enable the delivery of new and
innovative consumer and enterprise service offerings.

Hawaiian Telcom will deploy Alcatel-Lucent's access and IP
routing solutions to replace the existing high-speed Internet
infrastructure, and to provide the scalability, reliability and
speeds necessary to deliver compelling new service offerings
such as IPTV, advanced and interactive Internet and premium
Ethernet and IP VPN services.

"By offering innovative and advanced services to our consumer,
small business and enterprise customers, Hawaiian Telcom is
strengthening its competitive position," Michael McHale, Chief
Marketing Officer for Hawaiian Telcom, said.  "The deployment of
Alcatel-Lucent's Triple Play Service Delivery Architecture is a
significant element of our ongoing network transformation
strategy to IP-based technologies."

"The transformation of operator networks is something that we
continue to see in all regions around the world as our customers
strive to maintain an edge in a competitive marketplace," Tim
Krause, Alcatel-Lucent's Chief Marketing Officer, North America,
said.  "We are pleased to continue working with Hawaiian Telcom
as it transforms its network and business in a way that will
benefit both consumers and enterprises."

Alcatel-Lucent will provide Hawaiian Telcom with its state-of-
the-art ISAM product family a modular and flexible platform
(including the Alcatel 7330 ISAM FTTN and the Alcatel 7342 ISAM
FTTU) to extend the bandwidth potential of fiber from the
network core to the subscriber premises, as well as the 7750
Service Router (SR) and Alcatel 7450 Ethernet Service Switch
(ESS) to address its service routing requirements.

Worldwide, more than 150 service providers in over 65 countries,
including AT&T, BT, Telia Sonera, Telefonica and China Telecom,
have selected the Alcatel IP portfolio.

Alcatel-Lucent's ISAM product family is the industry's first IP
broadband services access platform, accommodating a wide range
of access technologies and network topologies. The ISAM family
is specifically designed to minimize the complexity and ensure
profitability as service providers transform their broadband
access networks to support full triple play service adoption.  
In addition to Hawaiian Telecom, more than 100 service providers
worldwide have chosen Alcatel-Lucent's ISAM family of products,
including AT&T, China Telecom, Swisscom, and TELUS.

                      About Hawaiian Telcom

Hawaiian Telcom -- http://www.hawaiiantel.com/-- is the  
Hawaii's leading telecommunications provider, offering a wide
spectrum of telecommunications products and services, which
include local and long distance service, high-speed Internet,
wireless services, and print directory and Internet directory
services.

                      About Alcatel-Lucent

Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable  
service providers, enterprises and governments worldwide, to
deliver voice, data and video communication services to end
users.  Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work and on the move.

On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.

                           *     *     *

As reported in the TCR-Europe on Dec. 14, following the
completion of Alcatel S.A.'s merger with Lucent
Technologies Inc., at which time Alcatel was renamed Alcatel-
Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:

   -- Issuer Default Rating to BB from BBB-; and
   -- Senior unsecured debt to BB from BBB-.

Alcatel's F3 short-term rating has also been withdrawn.

The Rating Outlook for Alcatel-Lucent is Stable.

Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:

   -- Issuer Default Rating BB-;
   -- Senior unsecured debt BB-;
   -- Convertible subordinated debt B; and
   -- Convertible trust preferred securities B.

Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent.  The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.

At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time.  The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.

Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
U.S. activities merged with their Alcatel counterparts.  This
should result in a rapid convergence of the credit risks of the
affected companies.  The outlook for all these ratings is
stable.  This rating action concludes the rating reviews
initiated on April 3, 2006.

Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006, research update.

The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed.  S&P said the outlook is positive.


===========
P O L A N D
===========


AFFILIATED COMPUTER: Identifies US$51MM Addt'l. Non-Cash Expense
----------------------------------------------------------------
Affiliated Computer Services Inc. determined that the
incremental cumulative non-cash compensation expense through
June 30, 2006, related to incorrect accounting measurement dates
is approximately US$51 million and that prior year financial
statements will be restated.

The determination was arrived at after it has completed the
review and evaluation of the results of its internal
investigation of its historical stock option practices.

The company is currently reviewing the tax impact, including
related interest and penalties, associated with stock options
and other matters.

The company's management made on Dec. 7, 2006, a presentation of
its determination to the audit committee of its board of
directors who concurred with and approved management's
determination.

Previously, the company disclosed that it was continuing to
review and evaluate the results of the internal investigation
and recent accounting guidelines established by the Securities
and Exchange Commission to determine the accounting consequences
of the use of incorrect measurement dates for certain stock
option grants during the period from 1994 through 2005.

The company's management is also currently evaluating the impact
of the results of the internal investigation of its stock option
practices on its internal control over financial reporting and
disclosure controls and procedures.

The company's management has already discussed the matter with
the Audit Committee and PricewaterhouseCoopers LLP, the
company's independent registered public accounting firm.

Headquartered in Dallas, Texas, Affiliated Computer Services,
Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides  
business process outsourcing and information technology
solutions to commercial and government clients.  The company has
global operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland and Singapore.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Nov. 30,
Standard & Poor's Ratings Services kept its ratings for
Affiliated Computer Services Inc. including the 'B+' corporate
credit rating, on CreditWatch, where they were placed with
negative implications on Sept. 29, 2006.

As reported in the TCR-Europe on Oct. 4, Moody's Investors
Service placed the Ba2 ratings of Affiliated Computer Services
on review for possible downgrade.  The review for downgrade was
prompted by the company's ongoing independent investigation into
historical stock option practices, which has resulted in the
company's delay in filing its 10-K for its fiscal year ended
June 2006.  The company has received certain waivers from credit
facility lenders through Dec. 31 related to the options matter.

The review will examine the company's access to internal and
external sources of liquidity as well as the prospects for
filing the June 10-K and subsequent financial statements with
the SEC by Dec. 31.  As part of this review, Moody's will assess
the company's acquisition plans and contract commitments.  If
the company becomes current in the filing of its financial
statements by Dec. 31 and any restatement is unlikely to result
in a material cash outflow, the ratings will likely be confirmed
at Ba2.

Ratings Placed on Review for Possible Downgrade:

    * Ba2 Senior Secured Term Loan Rating
    * Ba2 Senior Secured Revolving Credit Facility Rating
    * Ba2 Senior Notes Rating (US$500 Million due 2010 and 2015)
    * Ba2 Corporate Family Rating


EUROGAS INC: Sept. 30 Balance Sheet Upside-Down by US$41.1 Mln
--------------------------------------------------------------
Eurogas Inc.'s balance sheet at Sept. 30, 2006, showed US$3.1
million in total assets and US$30.1 million in total
liabilities, resulting in a US$41.1 million total stockholders'
deficit.

The company reported a US$10,160 net loss for the quarter ended
Sept. 30, 2006, compared with a US$307,199 net loss for the same
period in 2005.  The company had no oil and gas sales for both
periods.  Management says the losses for both periods were due
in large part to the absence of revenues, combined with
continued administrative, interest, foreign exchange loss and
other recurring continuing expenses.

General and administrative expenses were US$ 0 for the three
months ended Sept. 30, 2006, compared to US$269,435 for the
three months ended Sept. 30, 2005.  The decrease in
administrative expenses is the result of the corporate
inactivity of the company due to the Chapter 7 Bankruptcy.

Full-text copies of the company's consolidated financial
statements for the third quarter ended Sept. 30, 2006, are
available for free at http://researcharchives.com/t/s?1728

                          About Eurogas

Headquartered in Vancouver, Canada, Eurogas Inc. is primarily
engaged in the acquisition of rights to explore for and exploit
natural gas, coal bed methane gas, crude oil, talc and other
minerals.  The Company has acquired interests in several large
exploration concessions and are in various stages of identifying
industry partners, farming out exploration rights, undertaking
exploration drilling, and seeking to develop production.  The
company has acquired interests in several large exploration
concessions and is involved in operations in Central and Eastern
Europe.  Activities include a coalbed methane gas project in
Poland and a natural gas project in Slovakia.

Eurogas Inc. has been inactive since the company was put in
chapter 7 by one of its US creditors.  The company has impaired
most of its oil and gas properties and the remaining assets have
been put under the control of a bankruptcy trustee.  Realization
of the investment in properties and equipment is dependent upon
the US Bankruptcy Court in Salt Lake City, Utah, releasing the
company from chapter 7.

Since all assets of the company were sold at an auction held by
the US Bankruptcy Trustee in March 2006, proceeds in the amount
of approximately US$800,000 are to be distributed by the
Bankruptcy Trustee once he files his final report with the
Bankruptcy Court in Salt Lake City and the presiding Judge
approves of this repot.


===============
P O R T U G A L
===============


COMPANHIA SIDERURGICA: U.K. Regulator May Auction Corus in 2007
---------------------------------------------------------------
The contest between Tata Steel U.K. Limited and CSN Acquisitions
Ltd. to acquire Corus Group Plc may turn into an auction if the
company fails to name its buyer by Jan. 30, 2007, Bloomberg News
reports.

The Panel on Takeovers and Mergers said that it requires an
auction procedure to determine Corus' buyer if the "competitive
situation" between Tata Steel and CSN remains unresolved by the
given date.

                           CSN Bid

As reported in the TCR-Europe on Dec. 13, CSN increased its
purchase offer for Corus to US$9.6 billion or 515 pence a share,
topping Tata Steel's 500 pence per share offer.

Companhia Siderurgica's proposed purchase of Corus will be
funded through a BP4.35 billion of debt underwritten by Barclays
Plc, ING Groep NV and Goldman Sachs Group Inc., Bloomberg says,
citing Chief Financial Officer Otavio Lazcano as saying.  
Meanwhile, Companhia Siderurgica promised to pay BP138 million
to fund the deficit in the Corus Engineering Steels Pension
Scheme, Bloomberg says.  Also, the steelmaker will raise the
contribution rate on the British Steel Pension Scheme to 12%
from 10% until March 31, 2009.  The company's success in
acquiring Corus hinges on the unions' support, according to
published reports.

                           Tata Offer

As reported in the TCR-Europe on Dec. 11, the Boards of
Directors of Tata Steel Ltd. and Corus Group plc have agreed the
terms of an increased recommended revised acquisition at a price
of 500 pence in cash per Corus share.

Under the terms of the Revised Acquisition, Corus shareholders
will be entitled to receive 500 pence in cash for each Corus
Share.  This represents a price of 1,000 pence in cash for each
Corus ADS.

The terms of the Revised Acquisition value the entire existing
issued and to be issued share capital of Corus at approximately
GBP4.7 billion and the Revised Price represents:

   -- an increase of approximately 10% compared with 455 pence,
      being the Price under the original terms of the
      Acquisition;

   -- on an enterprise value basis, a multiple of approximately
      7.5x EBITDA from continuing operations for the 12 months
      to Sept. 30, 2006 (excluding the non-recurring pension
      credit of GBP96 million) and a multiple of approximately
      5.9x EBITDA from continuing operations for the year ended
      Dec. 31, 2005;

   -- a premium of approximately 38.7% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      12 months ended Oct. 4, 2006, being the last business day
      before the announcement by Tata Steel that it was
      evaluating various opportunities including Corus; and

   -- a premium of approximately 22.7% to the closing mid-market
      price of 407.5 pence per Corus Share on Oct. 4, 2006,
      being the last business day before the announcement by
      Tata Steel that it was evaluating various opportunities
      Including Corus.

The terms of the Revised Acquisition remain subject to the
conditions and do not affect Tata Steel's intentions regarding
the business of Corus, its management, employees and locations,
nor the proposals relating to Corus's pension schemes, the Corus
Share Schemes, Convertible Bonds or cancellation of the Deferred
Shares.

                        About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

                       About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.  It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Six years ago, the group suffered from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        *    *    *

Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional aka CSN after the
announcement of its association with U.S.-based steel maker
Wheeling-Pittsburgh Corp. in the U.S.  The outlook is stable.

Fitch Ratings viewed the proposed merger of Companhia
Siderurgica Nacional's or CSN North American operations with
those of Wheeling-Pittsburgh Corporation or WPSC to be neutral
to CSN's credit quality.  Fitch's ratings of CSN include:

  -- Foreign currency Issuer Default Rating: 'BB+';
  -- Local currency IDR: 'BBB-';
  -- National scale rating: 'AA (bra)';
  -- Senior unsecured notes 'BB+'; and
  -- Brazilian Real denominated debentures: 'AA (bra)'.


===========
R U S S I A
===========


ALFA LLC: Perm Court Names A. Osmekhin as Insolvency Manager
------------------------------------------------------------
The Arbitration Court of Perm Region appointed Mr. A. Osmekhin
as Insolvency Manager for LLC Engineering Enterprise Alfa.  He
can be reached at:

         A. Osmekhin
         Lenina Str. 72 B -11
         614068 Perm Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A50-9945/2006-B.

The Arbitration Court of Perm Region is located at:

         Lunacharskogo Str. 3
         Perm Region
         Russia

The Debtor can be reached at:

         LLC Engineering Enterprise Alfa
         1905g. Str. 35
         Perm Region
         Russia


BRATSKOYE FREIGHT: Court Names S. Galandin as Insolvency Manager
----------------------------------------------------------------
The Arbitration Court of Irkutsk Region appointed Mr. S.
Galandin as Insolvency Manager for CJSC Bratskoye Freight
Transport Enterprise #1.  He can be reached at:

         S. Galandin
         Office 403
         Dek. Sobytiy Str. 125
         664007 Irkutsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A19-10772/01-8.

The Arbitration Court of Irkutsk Region is located at:  

         Room 303
         Gagarina Avenue 70
         664025 Irkutsk Region
         Russia

The Debtor can be reached at:

         CJSC Bratskoye Freight Transport Enterprise #1
         Radisheva Str. 1
         Bratsk-3
         Irkutsk Region
         Russia


CHAINSKOYE CJSC: Court Names Ya. Gomerov as Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Novosibirsk Region appointed Mr. Ya.
Gomerov as Insolvency Manager for CJSC Chainskoye.  He can be
reached at:

         Ya. Gomerov
         Post User Box 325
         Krasnoobsk
         630501 Novosibirsk Region
         Russia
         Tel: 348-60-77

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A45-11795/06-4/214.

The Arbitration Court of Novosibirsk Region is located at:

         Kirova Str. 3
         630007 Novosibirsk Region
         Russia

The Debtor can be reached at:

         CJSC Chainskoye
         Chainka
         Kupinskiy Region
         Novosibirsk Region
         Russia


LUKOIL OAO: ConocoPhillips to Hike Stake to 20%
-----------------------------------------------
ConocoPhillips plans to increase its interest in OAO Lukoil to
20% by the end of the year as part of a strategic alliance
announced in 2004.

Lukoil also confirms that it reached definitive agreement with
ConocoPhillips for the company to purchase 376 ConocoPhillips'
fueling stations in six countries in Europe.

The agreement covers:

   -- 156 stations in Belgium,
   -- 49 in Finland,
   -- 44 in the Czech Republic,
   -- 30 in Hungary,
   -- 83 in Poland and
   -- 14 in Slovakia.

These stations are among the most efficient in their respective
markets.  At present, all facilities are branded Jet stations
and will be re-branded as LUKOIL stations within two years.

The transaction is expected to close in the second quarter of
2007 following review by relevant authorities.

"This deal is in support of the Company's downstream strategy,
which among other things envisages Lukoil's plans to
considerably expand its retail chain in Europe and sell products
with added value," Vagit Alekperov, President of Lukoil, said.

"The announcement represents a significant step in achieving our
asset disposition program, and we are pleased the transaction
supports the business direction of both companies," Jim Mulva,
chairman and chief executive officer of ConocoPhillips, said.

The agreement reflects the strong and valued relationship
between ConocoPhillips and Lukoil.

                          About Lukoil

Headquartered in Moscow, Russia, OAO Lukoil (LSE: LKOD; MICEX,
RTS: LKOH) -- http://www.Lukoil.com/-- explores and produces  
oil & gas, petroleum products and petrochemicals, and markets
the outputs.  Most of the Company's exploration and production
activity is located in Russia, and its main resource base is in
Western Siberia.

                          *     *     *

As reported in the TCR-Europe on July 12, Standard & Poor's
Ratings Services raised its long-term corporate credit rating on
Lukoil OAO to 'BB+' from 'BB'.  S&P said the outlook is
positive.


MDM BANK: Sergey Popov Acquires 90% Shareholding
------------------------------------------------
MDM Bank disclosed of an agreement reached by its owners whereby
Sergey Popov becomes the main investor in MDM Bank.  He will own
a 90% share in the Bank.

Martin Andersson, member of MDM Bank's strategy committee, will
acquire a 10% stake.  Andrey Melnichenko, who has been a 50-50
owner of the Bank together with Mr. Popov, will discontinue his
ownership in the Bank as part of a wider re-organization of his
interests with Mr. Popov.  This reorganization is subject to all
relevant regulatory approvals.

Mr. Popov has been one of MDM Bank's investors since 2003.  As a
member of MDM Bank's Board of Directors he was one of the
architects of the Bank's strategy and of the development of its
corporate governance system.  Currently Mr. Popov sits on the
Boards of MDM Bank, Russia's largest coal company, SUEK, and a
leading agrochemical company, EuroChem.

Mr. Andersson, a member of the Bank's Strategy committee since
the first half of 2006, is a founding partner of the Brunswick
Group. He was CEO and Chairman of Brunswick UBS Warburg, a
leading Russian investment bank.

                           About MDM

Headquartered in Moscow, Russia, OJSC MDM Bank --
http://www.mdmbank.com/-- provides financial services organized  
across four divisions: corporate banking, retail banking, and
investment banking.  The bank owns and operates 100 offices
throughout Russia.

                         *     *     *

As reported in the TCR-Europe on Nov. 30, Fitch Ratings changed
the Outlooks of Russia-based MDM Bank's and its ultimate parent
MDM Holding GmbH's Issuer Default ratings and National Long-term
ratings to Positive from Stable. The agency also affirmed the
ratings.

MDM Bank:

   -- IDR and foreign currency senior unsecured debt: affirmed
      at BB-; Outlook revised to Positive from Stable;

   -- Subordinated debt: affirmed at B+;

   -- National Long-term rating and RUB senior unsecured debt:
      affirmed at A+; Outlook revised to Positive from Stable;

   -- Short-term rating affirmed at B;

   -- Individual rating: affirmed at C/D; and

   -- Support rating: affirmed at 4.

MDM Holding GmbH:

   -- IDR: affirmed at BB-; Outlook revised to Positive from
      Stable;

   -- Short-term rating: affirmed at B;

   -- Individual rating: affirmed at C/D; and

   -- Support rating: affirmed at 5.

As reported in the Troubled Company Reporter on March 14,
Moody's Investors Service has assigned Ba2 and Not Prime long-
and short-term foreign currency bank deposit ratings and a D
Financial Strength Rating (FSR) to MDM Bank (Russia), which is
the lead operating entity in MDM Financial Group (MDM FG),
comprising over 90% of the group's total IFRS-consolidated
assets and shareholders' equity.

At the same time Moody's has affirmed the Ba2/Not Prime ratings
assigned to MDM Bank's US$2 billion Program for the Issuance of
Loan Participation Notes.  The Notes will be issued by, but with
limited recourse to, MDM International Funding Plc (Ireland) for
the sole purpose of financing advances to MDM Bank.  The outlook
for all ratings is stable.

According to Moody's, the Ba2/Not Prime/D ratings are based on
the fundamental credit strength of MDM Bank, and do not
incorporate any potential support from the authorities in case
of need.


MDM BANK: Fitch Affirms Sr. Unsec. Debt at BB- with Pos. Outlook
----------------------------------------------------------------
Fitch Ratings affirmed Russia-based MDM Bank's and its ultimate
parent, MDM Holding GmbH's:

   * MDM Bank:

      -- Issuer Default rating and foreign currency senior
         unsecured debt: affirmed at 'BB-' (BB minus); IDR
         Outlook Positive.

      -- Subordinated debt: affirmed at 'B+'.

      -- National Long-term rating and RUB senior unsecured
         debt: affirmed at 'A+(rus)'; Long-term rating Outlook
         Positive.

      -- Short-term rating affirmed at 'B'.

      -- Individual rating: affirmed at 'C/D'.

      -- Support rating: affirmed at '4'.

   * MDM Holding GmbH:

      -- IDR: affirmed at 'BB-' (BB minus); Outlook Positive.

      -- Short-term rating: affirmed at 'B'.

      -- Individual rating: affirmed at 'C/D'.

      -- Support rating: affirmed at '5'.

The affirmation follows the announcement of an agreement reached
by MDM Bank's owners whereby Sergey Popov becomes the main
investor in MDM Bank.  He will own a 90% share in the Bank.  
Martin Andersson, member of MDM Bank's strategy committee, will
acquire a 10% stake.  Andrey Melnichenko, who has been a 50-50
owner of the Bank together with Mr. Popov, will discontinue his
ownership in the Bank as part of a wider re-organization of his
interests with Mr. Popov.  This reorganization is subject to all
relevant regulatory approvals.

Fitch says that corporate governance improvements at MDM Bank,
which have included the gradual withdrawal from the bank's day-
to-day management by Mr. Melnichenko, the creation of
appropriate committee structures and the formation of an
experienced executive team under CEO Mr. Michel Perhirin, should
ensure minimal disruption to the bank's business.  Mr.
Melnichenko is to remain a member of MDM Bank's Board of
Directors at present.

Fitch understands that MDM Bank's strategy to push more
comprehensively into the middle-market retail and SME segments,
including in the Russian regions, will not be affected by the
ownership change.  The change in ownership has been structured
largely as an asset swap between the two parties and Fitch has
been assured that no leverage is required to effect the
transaction.

MDM Bank relies very heavily on wholesale sources of funds.  
Fitch considers that the change in ownership should not
materially affect MDM Bank's access to funding, nor its funding
costs.  However, it is difficult to predict the intentions of
the numerous interested parties and it is an area that Fitch
will monitor closely.

MDM Bank is by far the largest subsidiary of MDM Holding GmbH
and is Russia's 10th largest bank by assets.  MDM Holding GmbH
had consolidated assets of RUB210 billion and consolidated
equity of RUB29bn at end-September 2006.  Operating return on
average equity was 19.5% for first nine months of 2006, a little
lower than the 22% achieved in first nine months of 2005, a
period that benefited from exceptionally low impairment charges
and high trading gains.


METROMEDIA INT'L: Files 2004 Annual Report with U.S. SEC
--------------------------------------------------------
Metromedia International Group Inc. has filed with the U.S.
Securities and Exchange Commission its 2004 Annual Report on
Form 10-K.

With the filing of the 2004 Form 10-K, the Company has completed
a significant step in the restatement process that began in June
2005 and the Company is working diligently on completing and
filing with the SEC its outstanding Quarterly Reports on Form
10-Q for the fiscal periods ended March 31, June 30 and
Sept. 30, 2005 and 2006 and its outstanding Annual Report on
Form 10-K for the fiscal year ended Dec. 31, 2005.  

The Company cannot at this time provide any assurances as to
when these outstanding periodic reports will be completed and
filed with the SEC.

                        About Metromedia

Based in Charlotte, North Carolina, Metromedia International
Group (PINK SHEETS: MTRM-Common Stock and MTRMP-Preferred Stock)
-- http://www.metromedia-group.com/-- through its subsidiary,
Metromedia International Telecommunications, owns interests in
telecom and cable TV operations in Russia, Georgia, and
elsewhere in Eastern Europe.

The Company's core businesses includes Magticom, Ltd., the
leadingmobile telephony operator in Tbilisi, Georgia, and
Telecom Georgia, a well-positioned Georgian long distance
telephone operator.

                          *     *     *

In October 2006, Metromedia said it is filing a Chapter 11 Plan
in the U.S. after receiving a binding offer to acquire all of
the Company's business interests in Georgia for a cash price of
US$480 million from an investment group comprised of:

   -- Istithmar, an alternative investment house based in Dubai,
      United Arab Emirates;

   -- Salford Georgia, the Georgian office of Salford Capital
      Partners Inc., a private equity and investment management
      company which manages investments in the CIS and Central &
      Eastern Europe; and

   -- Emergent Telecom Ventures, a communications merchant bank
      focused on pursuing telecommunications opportunities in
      the Emerging Markets.

Upon the approval of the plan, all of the preferred and common
equity interests in the Company will be converted into the right
to receive the cash remaining after payment of all allowed
claims and the costs and expenses associated with the sale and
the Wind-Up.

Moody's Investors Service has placed Metromedia's subordinated
debt rating at B3 and junior subordinated debt rating at B2.


MOTORIST OJSC: Rostov Bankruptcy Hearing Slated for Feb. 6
----------------------------------------------------------
The Arbitration Court of Rostov Region will convene on
Feb. 6, 2007, to hear the bankruptcy supervision procedure on
OJSC Motorist (TIN 6147005560).  The case is docketed under Case
No. A53-12847/06-S2-30.

The Temporary Insolvency Manager is:

         A. Afanasyeva
         Voroshilova 5 1-2
         Shakhty
         346527 Rostov Region
         Russia

The Arbitration Court of Rostov Region is located at:

         Stanislavskogo Str. 8a
         344008 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         OJSC Motorist
         Polevoy Per. 43
         Kamensk-Shakhtinskiy
         347800 Rostov Region
         Russia


NORTH-METAL CJSC: Court Names S. Kovalev as Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
appointed Mr. S. Kovalev as Insolvency Manager for CJSC North-
Metal.  He can be reached at:

         S. Kovalev
         Office 1305
         Building 1
         16th liniya of V.O. 7
         199034 St-Petersburg V.O.
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A56-14668/2006.

The Arbitration Court of St. Petersburg and the Leningrad Region
is located at:

         Hall 113
         Suvorovskiy Pr. 50/52
         St. Petersburg Region
         Russia

The Debtor can be reached at:

         CJSC North-Metal
         Lodygina Str. 1/28
         190103 St. Petersburg Region
         Russia


NOVOCHERKASSKIY LIQUEUR-VODKA: Court Hearing Slated for March 5
---------------------------------------------------------------
The Arbitration Court of Rostov Region will convene at 2:30 p.m.
on March 5 to hear the bankruptcy supervision procedure on OJSC
Novocherkasskiy Liqueur-Vodka Distillery.  The case is docketed
under Case No. A53-16736/06-S1-8.

The Temporary Insolvency Manager is:

         S. Kozlov
         Buynakskaya Str. 2/56
         344037 Rostov-na-Donu
         Russia

The Arbitration Court of Rostov Region is located at:

         Stanislavskogo Str. 8a
         344008 Rostov-na-Donu
         Russia

The Debtor can be reached at:

         OJSC Novocherkasskiy Liqueur-Vodka Distillery
         Ermaka Pr. 5
         Novocherkassk
         346429 Rostov Region
         Russia


ORLOVSKOYE OJSC: Court Names V. Volgin as Insolvency Manager  
------------------------------------------------------------
The Arbitration Court of Voronezh Region appointed Mr. V. Volgin
as Insolvency Manager for OJSC Orlovskoye.  He can be reached
at:

         V. Volgin
         Apartment 39
         Mira Str. 6
         394000 Voronezh Region
         Russia
         Tel: 8(4732) 51-24-67

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A14-6780-2006/33b.

The Arbitration Court of Voronezh Region is located at:

         Room 606
         Srednemoskovskaya Str. 77
         Voronezh Region
         Russia

The Debtor can be reached at:

         OJSC Orlovskoye
         Orlovka
         Talovskiy Region
         Voronezh Region
         Russia


POSEVNINSKAYA LLC: Bankruptcy Hearing Slated for January 15
-----------------------------------------------------------
The Arbitration Court of Novosibirsk Region will convene at
3:00 p.m. on Jan. 15, 2007, to hear the bankruptcy supervision
procedure on LLC Poultry Farm Posevninskaya.  The case is
docketed under Case No. A45-16905/06-4/339.

The Temporary Insolvency Manager is:

         A. Tyutyunik
         Partizanskaya Str. 23
         Cherepanovo
         633520 Novosibirsk Region
         Russia
         Tel./Fax: 8-383-245-21-797

The Arbitration Court of Novosibirsk Region is located at:

         Kirova Str. 3
         630007 Novosibirsk Region
         Russia

The Debtor can be reached at:

         LLC Poultry Farm Posevninskaya
         Promyshlennaya Str. 1 a
         Posevnaya
         Cherepanovskiy Region
         633511 Novosibirsk Region
         Russia


SEL-KHOZ-TEKHNIKA OJSC: Court Starts Bankruptcy Supervision
-----------------------------------------------------------
The Arbitration Court of Murmansk Region commenced bankruptcy
supervision procedure on OJSC Sel-Khoz-Tekhnika (TIN/KPP
5105040345/510501001).  The case is docketed under Case No.
A42-2908/2006.

The Temporary Insolvency Manager is:

         A. Arendarchuk
         Post User Box 113
         183012 Murmansk Region
         Russia

The Arbitration Court of Murmansk Region is located at:

         Knipovicha Str. 20
         Murmansk Region
         Russia

The Debtor can be reached at:

         OJSC Sel-Khoz-Tekhnika
         Andrusenko Str. 10
         Kola
         184380 Murmansk Region
         Russia


SERDOBSKIY BRICKWORKS: Court Names A. Makarov to Manage Assets
--------------------------------------------------------------
The Arbitration Court of Penza Region appointed Mr. A. Makarov
as Insolvency Manager for OJSC Serdobskiy Brickworks.  He can be
reached at:

         A. Makarov
         K. Marksa Str. 26
         440026 Penza Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A49-2516/06-258b/3.

The Arbitration Court of Penza Region is located at:

         Belinskogo Str. 2
         440600 Penza Region
         Russia

The Debtor can be reached at:

         OJSC Serdobskiy Brickworks
         Belinskogo Str. 35
         Serdobsk
         Penza Region
         Russia


SEVERSTAL OAO: Gains RUR24.8 Billion from New Share Issue
---------------------------------------------------------
OAO Severstal has completed the placement of its additional
shares, RosBusinessConsulting reports.

The company raised around RUR24.83 billion after placing a total
of 76,916,692 shares at RUR322.81 per share.

Company shareholders exercised their pre-emptive rights to
acquire 90.49% of the additional share issue.  Severstal was
unable to sell its shares to other buyers at RUR332.74, RBC
relates.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel  
producer, with steel production of 17.1 million tons in 2005.  
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of around EUR150 per ton.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                        *     *     *

As reported in the TCR-Europe on July 5, Standard & Poor's
Ratings Services kept its 'B+' long-term corporate credit rating
on Russian steelmaker OAO Severstal on CreditWatch with positive
implications following the consolidation of the company's mining
assets.

The rating was placed on CreditWatch on May 26, following the
announcement of a previously agreed merger between Severstal and
Luxembourg-based steelmaker Arcelor S.A.  This merger was
cancelled on June 30.

As reported in the TCR-Europe on June 28, Fitch Ratings
maintained the Rating Watch Positive status for OAO Severstal's
ratings of Issuer Default BB-, senior unsecured BB-, Short-term
B and National Long-term A+.

Severstal, which recently raised just over US$1 billion placing
shares in London, plans to acquire more assets on the way to
becoming the world's second-largest steel maker, its 41-year-old
billionaire owner, Alexei Mordashov, has said.


SEVERSTAL OAO: Appoints Five Non-Executive Directors to Board
-------------------------------------------------------------
OAO Severstal disclosed that all the resolutions were passed at
the company's Dec. 15 Extraordinary General Meeting, including
those in relation to the appointments to the Board of Directors.

These appointments are made as part of Severstal's new corporate
governance arrangements designed to comply with the key elements
of the U.K.'s corporate governance standards.

Following these appointments, Severstal will have a 10-person
Board.

Five Executive Directors:

   -- Alexey Mordashov,
   -- Mikhail Noskov,
   -- Vadim Makhov,
   -- Anatoliy Kruchinin, and
   -- Vadim Shvetsov.

Five Independent Non-Executive Directors:

   -- Chris Clark, Independent Director and Non-executive
      Chairman of the Board;

   -- Martin Angle, Independent Director;

   -- Rolf Stomberg, Senior Independent Director;

   -- Ron Freeman, Independent Director; and

   -- Dr Peter Kraljic, Independent Director.

The first meeting of the Board of Directors was held immediately
after the Extraordinary General Meeting.

The Board of Directors has elected Chris Clark as the Chairman
of the Board and appointed Chairmen and members of Audit and
Remuneration committees.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel  
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of around EUR150 per ton.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                          *     *     *

As reported in the TCR-Europe on July 5, Standard & Poor's
Ratings Services kept its 'B+' long-term corporate credit rating
on Russian steelmaker OAO Severstal on CreditWatch with positive
implications following the consolidation of the company's mining
assets.

The rating was placed on CreditWatch on May 26, following the
announcement of a previously agreed merger between Severstal and
Luxembourg-based steelmaker Arcelor S.A.  This merger was
cancelled on June 30.

As reported in the TCR-Europe on June 28, Fitch Ratings
maintained the Rating Watch Positive status for OAO Severstal's
ratings of Issuer Default BB-, senior unsecured BB-, Short-term
B and National Long-term A+.


SLAVINVESTBANK LLC: Fitch Rates US$100-Million Notes at B-
----------------------------------------------------------
Fitch Ratings assigned Slavinvest Finance SA's US$100 million
9.875% loan participation notes due 2009 a final Long-term 'B-'
rating and a final Recovery Rating 'RR4'.  The issue's Long-term
rating is placed on Rating Watch Positive.

The notes are to be used for the sole purpose of financing a
loan to Slavinvestbank LLC, which is rated Issuer Default 'B-',
Short-term 'B', Individual 'D/E', Support '5' and National Long-
term 'BB+(rus)'.  The bank's Issuer Default, Support and
National Long-term ratings are on Rating Watch Positive.

The final prospectus (as of Dec. 15, 2006) contains additional
clause specifying that the notes may be redeemed at the option
of the noteholders at their principal amount, together with
accrued interest to the date of redemption, following the
occurrence of a put event.  The latter is defined as:

     (i) a change of control which results in a rating decline;
         or

    (ii) a failure to obtain ownership and control deemed as to
         have occurred if, by June 21, 2008, Bank TuranAlem
         has not acquired direct ownership and control of a
         controlling stake in SIB.

Slavinvestbank LLC is a small-sized universal bank, accounting
for about 0.2% of system assets, which operates through 17
branches and additional offices in Russia.  About 16% of the
bank's voting shares are directly owned by the second largest
bank in Kazakhstan, BTA (rated Foreign Currency Issuer Default
'BB+', Foreign Currency Short-term 'B', Individual 'C/D',
Support '3').  The remaining 84% of shares are held by a number
of formal shareholders who have passed their shares in the trust
of TuranAlem Capital.


VNESHTORGBANK JSC: Eyes US$4.6 Billion Fresh Capital in 2007 IPO
----------------------------------------------------------------
JSC Vneshtorgbank aims to raise up to RUB120 billion from its
planned initial public offering in 2007, Bloomberg News reports.

VTB will offer to the public 20% to 22% of its total shares,
which could earn around RUR90-RUR120 billion for the company,
Economy Minister German Gref said in a televised government
meeting.  

As reported in the TCR-Europe on Dec. 6, the Russian government
eyes beneficial terms for initial public offerings of state-
controlled banks OAO Sberbank Rossii and Vneshtorgbank.  

As reported, the government plans an IPO for Sberbank in the
first quarter of 2007, and for Vneshtorgbank in the second
quarter.  Russia intends to gradually reduce its holdings in the
two banks.  

Mr. Gref said VTB's IPO will occur in May or June 2007, after
President Vladimir Putin signs the necessary decree.

Bloomberg suggests that Russian banks are raising capital to
boost lending as the country enters a ninth year of economic
expansion and embarks on a multibillion-dollar overhaul of
Soviet-era infrastructure.

The need for capital will swell in 2007, thus investors are
encouraged to invest in state-owned institutions like OAO
Sberbank, Renaissance Capital investment bank told Bloomberg
News.  Sberbank is seeking to raise around US$7 billion in 2007
via a secondary share sale to raise its legal lending limit.

                      About Vneshtorgbank

Headquartered in Moscow, Russia, JSC Vneshtorgbank --
http://www.vtb.ru/-- offers a wide range of banking services  
and conducting operations in both Russian and international
markets.

As of Dec. 31, 2005, the Group had a network of 151 branches,
including 55 branches of VTB, 42 branches of VTB Retail Services
and 54 branches of Industry and Construction Bank, located in
major Russian regions.  The Group operates through three
subsidiaries located in the CIS (Armenia, Georgia, Ukraine),
seven subsidiaries located in Western Europe (Austria, Cyprus,
Switzerland, Germany, Luxembourg, France) and Great Britain and
through five representative offices located in India, Italy,
China, Byelorussia and Ukraine.


VNESHTORGBANK JSC: Fitch Affirms Individual Rating at C/D
---------------------------------------------------------
Fitch Ratings affirmed the ratings of Russia-based JSC
Vneshtorgbank and its London-, Paris- and Cyprus-based
subsidiaries, respectively VTB Europe plc, VTB Bank France SA.
and Russian Commercial Bank (Cyprus), at:

   * JSC Vneshtorgbank:

      -- Foreign currency Issuer Default rating: 'BBB+',
         Short-term foreign currency 'F2', Individual 'C/D',
         Support '2', National Long-term 'AAA(rus)', Local
         currency IDR 'BBB+'.

         The Outlooks on the bank's IDRs and National Long-term
         rating are Stable.

         VTB's IDRs, Short-term and Support ratings are
         underpinned by its majority state ownership, importance
         to the Russian banking system, and Fitch's view of the
         high probability of support from the Russian state in
         case of need.  However, the bank's support floor
         continues to depend on its status, ownership and
         importance to the Russian banking system.  Upside
         potential for the Individual rating is currently
         limited given VTB's exposure to political risk,
         pressured capitalization, transparency issues
         surrounding the bank's largest credit exposures and
         increasing operational and credit risks.

   * VTB Europe plc:

      -- Foreign currency IDR 'BBB', Short-term foreign
         currency, 'F3', Individual 'C' and Support '2'.  

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         In light of VTBE's 89%-owner, VTB, which is Russia's
         second largest, state-owned bank, as well as the
         comfort letter Fitch understands that VTB has provided
         to the UK's Financial Services Authority in respect of
         VTBE (which although not legally binding provides a
         strong moral obligation to support VTBE), there is a
         high probability that support for VTBE would be
         forthcoming from VTB, if needed, flowing ultimately
         from the Russian state.  Fitch does not expect an
         upgrade of VTBE's Individual rating in the near future.
         Downward movement could result from failure to offset
         revenue pressures, a decline in asset quality or an
         increase in risk appetite.

   * VTB Bank France SA.:

      -- Foreign currency IDR 'BBB', Short-term foreign currency
         'F3', Individual 'C/D' and Support '2'.

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         The Issuer Default, Short-term and Support ratings of
         VTBF reflect Fitch's view of the high probability of
         support from VTB, if needed, flowing ultimately from
         the Russian government.  This is based on VTBF's 87%-
         ownerhip by VTB, as well as the assurances provided by
         VTB to the French authorities in respect of VTBF's
         solvency and by the Central Bank of Russia (VTBF's
         former majority owner) in respect of VTBF's liquidity
         (up until end-2007).  Fitch does not expect an upgrade
         of VTBF's Individual rating in the near future.  
         However, downward movement could result from failure to
         offset revenue pressures or should VTB channel upstream
         a large amount of capital from VTBF.

   * Russian Commercial Bank (Cyprus):

         Foreign currency IDR 'BBB', Short-term foreign currency
         'F3' and Support '2'.  The Outlook on the bank's IDR is
         Stable mirroring that assigned to VTB's IDR.  RCBC's
         Individual rating of 'D/E' is affirmed and withdrawn.
         
         RCBC's ratings reflect the high probability of support
         being forthcoming from its 100% shareholder, VTB, in
         case of need.  Under the terms of RCBC's banking
         license granted by the Cypriot authorities, its
         obligations are guaranteed by VTB in the case of RCBC
         being wound up.  However, in light of possible
         timeliness issues relating to enforcement of the
         guarantee, and also its cross-border nature, Fitch
         maintains a one-notch differential between the ratings
         of VTB and RCBC.  The withdrawal of RCBC's Individual
         rating reflects the extent of integration between RCBC
         and its parent, which makes an analysis of RCBC on a
         standalone basis difficult.  Fitch is informed that
         RCBC will remain a direct subsidiary of VTB for the
         foreseeable future, notwithstanding the ongoing
         restructuring of VTB's western European subsidiaries.

Founded in 1990, VTB is Russia's second-largest bank by assets
and equity.  Historically a corporate bank, it is also
aggressively expanding its domestic small and mid-sized
enterprise and retail banking operations.  VTB's strategy is to
become a mid-sized European bank.  Following a number of
acquisitions, VTB group comprises three major Russian banks,
seven banks in Western Europe, including VTBE and VTBF (both
acquired at end-2005) and RCBC, and four banks in CIS countries.  
It also has offices in Africa and plans to open new offices in
Asia.


VNESHTORGBANK JSC: Inks Syndicated Factoring Project with NFC
-------------------------------------------------------------
JSC Vneshtorgbank and the National Factoring Company launched a
Syndicated Factoring joint project.

Cooperation of key players in the banking and factoring markets
suggests that the parties join together their efforts to ensure
expanded access of trade and manufacturing companies to high
quality factoring services.

Within the framework of the project, VTB and NFC will deliver
joint factoring services to customers under tripartite
agreements to be entered into between VTB, NFC and the customer.

And VTB will be engaged in preliminary marketing, negotiating
with companies interested in factoring, handling of customers so
as to gather the package of documents needed for the
transaction, accepting original documents and a 100% funding.  
In its turn, NFC will undertake to arrange sales, to offer
customer consulting, to discount monetary claims, manage
customer's accounts receivable and ensure safety of customers
against credit risks (debtor default risks).

The Commercial Factoring line of products to be offered within
the framework of this project comprises financing for deferred
payment deliveries under the Factoring-Finance, coverage of
credit risks under the Factoring-Guarant, and receivables
assessment and management under the Factoring-Signal.

Partnership of the two companies which are leaders of the
Russian financial market redoubles the opportunities to
elaborate unique offers for the consumer both in terms of
contents and quality of the services, and in terms of
competitive pricing offer formation.

Alliance between VTB and NFC in this project will enable the
Bank to diversify the existing line of products by a
comprehensive package of factoring services and at the same time
to avoid costs related to any factoring infrastructure. In its
turn, NFC will have access to funding and an opportunity to
increase business volumes by tapping resources of the vast
regional network of the VTB Group. Joint efforts of the Bank and
the Company will allow the two parties to gain strong leadership
in the Russian financial market, and will result in a broader
popularity of the commodity lending among households.

Through diversification of its activities, VTB continues
expanding its range of transactions carried out in the Russian
market and delivers its customers a wide range of financial
instruments recognized in international banking practice.  In
addition to conventional banking services, VTB offers its
customers cooperation with its subsidiaries and partners.

To illustrate, in 2002, the Bank founded VTB-Leasing engaged in
financial lease of manufacturing machinery, motor vehicles;
computer, office and trade equipment; real estate and others to
large- and medium-sized companies. Developing such business
lines on a comprehensive basis enables Russian enterprises to
open new opportunities for further growth and for an efficient
finance management system.

The National Factoring Company is the first independent
professional factoring company in Russia holding leadership
positions in the Russian market.

                      About Vneshtorgbank

Headquartered in Moscow, Russia, JSC Vneshtorgbank --
http://www.vtb.ru/-- offers a wide range of banking services  
and conducting operations in both Russian and international
markets.

As of Dec. 31, 2005, the Group had a network of 151 branches,
including 55 branches of VTB, 42 branches of VTB Retail Services
and 54 branches of Industry and Construction Bank, located in
major Russian regions.  The Group operates through three
subsidiaries located in the CIS (Armenia, Georgia, Ukraine),
seven subsidiaries located in Western Europe (Austria, Cyprus,
Switzerland, Germany, Luxembourg, France) and Great Britain and
through five representative offices located in India, Italy,
China, Byelorussia and Ukraine.

                        *     *     *

Following the recent upgrade of the Russian sovereign foreign
and local currency IDRs to BBB+ from BBB, Fitch ratings lifted
Vneshtorgbank's Upgraded to foreign currency and local currency
IDR to BBB+ from BBB with a Stable Outlook and Short-term to F2
from F3.  Fitch also affirmed the Individual rating at C/D and
Support at 2.

Fitch also upgraded Vnesheconombank IDR rating to BBB+ from BBB
with a Stable Outlook; and Short-term to F2 from F3.  Fitch
affirmed the Support rating at 2.


VODOPYANOVSKOYE OJSC: Bankruptcy Hearing Slated for March 15
------------------------------------------------------------
The Arbitration Court of Tambov Region will convene on March 15
to hear the bankruptcy supervision procedure on OJSC
Vodopyanovskoye.  The case is docketed under Case No. A-57-658B/
06-31.

The Temporary Insolvency Manager is:

         M. Kuvshinova
         Shmidta Str. 4
         440039 Penza Region
         Russia

The Debtor can be reached at:

         OJSC Vodopyanovskoye
         Vodopyanovka
         Marksiovskiy Region
         Saratov Region
         Russia


WEST-URAL CRANE FACTORY: Bankruptcy Hearing Slated for March 19
---------------------------------------------------------------
The Arbitration Court of Perm Region will convene on March 19 to
hear the bankruptcy supervision procedure on LLC West-Ural Crane
Factory.  The case is docketed under Case No. A50-15831/06-B.

The Temporary Insolvency Manager is:

         I. Pismanik
         Post User Box 7645
         614007 Perm Region
         Russia

The Arbitration Court of Perm Region is located at:

         Lunacharskogo Str. 3
         Perm Region
         Russia

The Debtor can be reached at:

         LLC West-Ural Crane Factory
         Bytovoy Per. 30
         Stroiteley Location
         Kizel
         Perm Region
         Russia


WOODWORKING FACTORY CJSC: Tomsk Court Names Insolvency Manager
--------------------------------------------------------------
The Arbitration Court of Tomsk Region appointed Mr. S. Lizunov
as Insolvency Manager for CJSC Woodworking Factory.  He can be
reached at:

         S. Lizunov
         Govorova Str. 1A
         634057 Tomsk Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A67-8054/06.

The Debtor can be reached at:

         CJSC Woodworking Factory
         Yurtochnyj Per. 2-3
         Tomsk Region
         Russia


WOODWORKING FACTORY OJSC: Court Taps S. Chashin to Manage Assets
----------------------------------------------------------------
The Arbitration Court of St. Petersburg and Leningrad Region
appointed Mr. S. Chashin as Insolvency Manager for OJSC
Woodworking Factory.  He can be reached at:

         S. Chashin
         Post User Box 15
         191024 St. Petersburg Region
         Russia

The Court commenced bankruptcy proceedings against the company
after finding it insolvent.  The case is docketed under Case No.
A56-42871/2005.

The Arbitration Court of St. Petersburg and the Leningrad Region
is located at:

         Hall 113
         Suvorovskiy Pr. 50/52
         St. Petersburg
         Russia

The Debtor can be reached at:

         OJSC Woodworking Factory
         Naziya
         Kirovskiy Region
         187310 Leningrad Region
         Russia


=========
S P A I N
=========


MADRID RMBS II: Fitch Rates EUR18.9 Million Class E Notes at BB+
----------------------------------------------------------------
Fitch Ratings assigned final ratings to Madrid RMBS II, Fondo de
Titulizacion de Activos EUR1.8 billion mortgage-backed floating-
rate notes:

   -- EUR414 million Class A1 due in August 2049: 'AAA';
   -- EUR936 million Class A2 due in August 2049: 'AAA';
   -- EUR270 million Class A3 due in August 2049: 'AAA';
   -- EUR63 million Class B due in August 2049: 'AA';
   -- EUR67.5 million Class C due in August 2049: 'A';
   -- EUR30.6 million Class D due in August 2049: 'BBB' and
   -- EUR18.9 million Class E due in August 2049: 'BB+'.

This transaction is a cash flow securitization of a EUR1.8bn
static pool of first-ranking residential mortgage loans granted
by Caja de Ahorros y Monte de Piedad de Madrid (rated 'AA-' (AA
minus)/'F1+').

The final ratings are based on the quality of the collateral,
the underwriting and servicing capabilities of the seller,
available credit enhancement, the integrity of the transaction's
legal and financial structure and Titulizacion de Activos,
S.G.F.T., S.A.'s administrative capabilities.  The final ratings
address payment of interest on the notes according to the terms
and conditions of the documentation, subject to a deferral
trigger on the Class B, C, D and E notes, as well as the
repayment of principal by legal final maturity for each note.

The fund is regulated by Spanish Securitization Law 19/1992 and
Royal Decree 926/1998.  Its sole purpose is to convert mortgage
transmission certificates (certificados de transmision de
hipotecas from the seller into fixed-income securities.  The
fund is legally represented and managed by TdA, a limited
liability company incorporated under Spanish law, whose
activities are limited to the management of securitization
funds.


=====================
S W I T Z E R L A N D
=====================


BALLFIRE LLC: St. Gallen Court Starts Bankruptcy Proceedings
------------------------------------------------------------
The Bankruptcy Court of St. Gallen commenced bankruptcy
proceedings against LLC Ballfire on Oct. 24.

The Debtor can be reached at:

         LLC Ballfire
         Im Grund 16
         9012 St. Gallen
         Switzerland

The Bankruptcy Service of St. Gallen can be reached at:

         Bankruptcy Service of St. Gallen
         Max Banziger
         9001 St. Gallen
         Switzerland


BDS FINANCE-SERVICES: Zug Court Closes Bankruptcy Proceedings
-------------------------------------------------------------
The Bankruptcy Court of St. Gallen entered Nov. 3 an order
closing the bankruptcy proceedings of JSC BDS Finance-Services.

The Debtor can be reached at:

         JSC BDS Finance-Services
         Alte Steinhauserstrasse 35
         6330 Cham
         Zug
         Switzerland

The Bankruptcy Service of Zug can be reached at:

         Bankruptcy Service of Zug
         6300 Zug
         Switzerland


CW CARAVAN: Berne Court Starts Bankruptcy Proceedings
-----------------------------------------------------
The Bankruptcy Court of Emmental-Oberaargau and Control of Debt
Payment commenced bankruptcy proceedings against JSC CW Caravan
Waibel on Sept. 28.

The Debtor can be reached at:

         JSC CW Caravan Waibel
         Hindelbankstrasse 38
         3321 Schonbuhl
         Switzerland

The Bankruptcy Service of Emmental-Oberaargau can be reached at:

         Bankruptcy Service of Emmental-Oberaargau
         Administrative Department Burgdorf,
         3401 Burgdorf
         Berne
         Switzerland


DHMN JSC: Thurgau Court Suspends Bankruptcy Proceedings
-------------------------------------------------------
The Bankruptcy Service of Thurgau suspended the bankruptcy
proceedings of JSC DHMN on Nov. 23, pursuant to Article 230 of
the Swiss Bankruptcy Code.

The bankruptcy proceedings will be declared closed once
creditors fail to submit their claims and pay a CHF4,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Oct. 24, can be reached at:

         JSC DHMN
         Hohliberg 9/Postfach
         8503 Frauenfeld
         Thurgau
         Switzerland

The Bankruptcy Service of Thurgau can be reached at:

         Bankruptcy Service of Thurgau
         8510 Frauenfeld
         Thurgau
         Switzerland


DREILINDEN LANGENTHAL: Berne Court Starts Bankruptcy Proceedings
----------------------------------------------------------------
The Bankruptcy Court of Emmental-Oberaargau Eyhalde 2 and
Control of Debt Payment commenced bankruptcy proceedings against
JSC Dreilinden Langenthal on Sept. 25.

The Debtor can be reached at:

         JSC Dreilinden Langenthal
         Aarwangenstrasse 4
         4900 Langenthal
         Berne
         Switzerland

The Bankruptcy Service of Emmental-Oberaargau Eyhalde 2 can be
reached at:

         Bankruptcy Service of Emmental-Oberaargau Eyhalde 2
         4912 Aarwangen
         Berne
         Switzerland


LANNA GASTRO: Thurgau Court Starts Bankruptcy Proceedings
---------------------------------------------------------
The Bankruptcy Court of Thurgau commenced bankruptcy proceedings
against JSC Lanna Gastro on Sept. 29.

The Debtor can be reached at:

         JSC Lanna Gastro
         Wilenstrasse 11a
         9322 Egnach
         Switzerland

The Bankruptcy Service of Thurgau can be reached at:

         Bankruptcy Service of Thurgau
         8510 Frauenfeld
         Thurgau
         Switzerland


POLYTECH SUISSE: Berne Court Starts Bankruptcy Proceedings
----------------------------------------------------------
The Bankruptcy Court of Emmental-Oberaargau and Control of Debt
Payment commenced bankruptcy proceedings against JSC Polytech
Suisse on Oct. 11.

The Debtor can be reached at:

         JSC Polytech Suisse
         Kirchgasse 13
         4932 Lotzwil
         Berne
         Switzerland

The Bankruptcy Service of Emmental-Oberaargau can be reached at:

         Bankruptcy Service of Emmental-Oberaargau
         Admistrative Department Aarwangen
         4912 Aarwangen
         Berne
         Switzerland


TECH DATA: Moody's Rates Proposed US$350-Mln Sr. Notes at Ba2
-------------------------------------------------------------
Moody's Investors Service assigned a Ba2 to Tech Data
Corporation's proposed offering of up to US$350 million
convertible senior notes due 2026 and affirmed its existing
ratings.

The net proceeds from the offering will be used primarily to pay
down Tech Data's higher interest bearing intra-quarter debt and
enhance the company's liquidity position.

The rating reflects both the overall probability of default of
the company under Moody's LGD framework, to which Moody's
affirms its PDR of Ba1, and a loss-given-default of LGD-6 for
the convertible senior notes.

The ratings outlook remains negative.

This report is not viewed as a change in the company's overall
financial policies and Moody's notes that at the current rating
level of Ba1, the company has modest debt capacity.

Additionally, Tech Data is expected to save approximately
US$9 million in annual net interest expense through this
offering.  In May 2005, Tech Data implemented a restructuring
program to improve the cost structure and productivity of its
EMEA operations.  The company has incurred US$55 million of
total cash restructuring costs, which should generate annualized
cost savings of the same amount.  

It is Moody's understanding that Tech Data has completed the
restructuring program and expects no further cash charges.

Moody's most recent rating action on Tech Data occurred on
March 15, 2006, when Moody's affirmed Tech Data's ratings and
revised the outlook to negative from stable.  This was due to
increasing competitive pricing pressures, steady gross margin
decline, continued weakness in the EMEA operations and weakened
operating profitability on a year-over-year basis.

Tech Data's operating performance for the trailing twelve months
ending in October 2006 was weak with a gross margin of 4.5%
compared to 5% in fiscal 2006 and operating margin of 0.7%
versus 0.8% in the prior year.  Tech Data's margins, which have
continued to trend down over a multi-year period across several
cycles, are thinner than its peer distributors.  Moody's notes
that if the earnings were to experience further weakening from
current levels, the EMEA business continued to exhibit weak
operating results despite the restructuring efforts or gross
cash flow migrates below historical levels, Moody's would likely
downgrade the corporate family rating.  To the extent the
company experiences a reversal of margin trends and benefits
from the EMEA restructuring actions, resulting in operating
performance that returns to historical levels, Moody's could
stabilize the CFR.

These new ratings and assessments were assigned:

   -- up to US$350 million Convertible Senior Unsecured Notes
      due 2026 at Ba2, LGD6, 94%

These ratings were affirmed:

   -- Corporate Family Rating at Ba1
   -- Probability of Default Rating at Ba1

The rating outlook is negative.

Clearwater, Florida-based Tech Data Corp. is a global
distributor of information technology and computer related
products.


THEILER SIRNACH: Thurgau Court Suspends Bankruptcy Proceedings
--------------------------------------------------------------
The Bankruptcy Service of Thurgau suspended the bankruptcy
proceedings of LLC Theiler Sirnach on Dec. 7, pursuant to
Article 230 of the Swiss Bankruptcy Code.

The bankruptcy proceedings will be declared closed once
creditors fail to submit their claims and pay a CHF4,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Oct. 7, can be reached at:

         LLC Theiler Sirnach
         Winterthurerstrasse 43
         8370 Sirnach
         Thurgau
         Switzerland

The Bankruptcy Service of Thurgau can be reached at:

         Bankruptcy Service of Thurgau
         8510 Frauenfeld
         Thurgau
         Switzerland


TSCHANZ KUCHEN: St. Gallen Court Closes Bankruptcy Proceedings
--------------------------------------------------------------
The Bankruptcy Court of St. Gallen entered Nov. 2 an order
closing the bankruptcy proceedings of LLC tschanz Kuchen.

The Debtor can be reached at:

         LLC tschanz Kuchen
         Vogelsbergstrasse 19
         9240 Uzwil
         St. Gallen
         Switzerland

The Bankruptcy Service of St. Gallen can be reached at:

         Bankruptcy Service of St. Gallen
         Branch Oberuzwil
         Urs Ghirlanda
         9242 Oberuzwil
         St. Gallen
         Switzerland


UNTERSEE AUKTIONEN: Court Suspends Bankruptcy Proceedings
---------------------------------------------------------
The Bankruptcy Service of Thurgau suspended the bankruptcy
proceedings of JSC Untersee Auktionen on Dec. 7, pursuant to
Article 230 of the Swiss Bankruptcy Code.

The bankruptcy proceedings will be declared closed once
creditors fail to submit their claims and pay a CHF4,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Oct. 5, can be reached at:

         JSC Untersee Auktionen
         Zurcherstrasse 270
         8500 Frauenfeld
         Thurgau
         Switzerland

The Bankruptcy Service of Thurgau can be reached at:

         Bankruptcy Service of Thurgau
         8510 Frauenfeld
         Thurgau
         Switzerland


VERAGUTH-MOTOS LLC: Court Suspends Bankruptcy Proceedings
---------------------------------------------------------
The Bankruptcy Service of Thurgau suspended the bankruptcy
proceedings of LLC Veraguth-Motos on Dec. 7, pursuant to
Article 230 of the Swiss Bankruptcy Code.

The bankruptcy proceedings will be declared closed once
creditors fail to submit their claims and pay a CHF5,000
deposit.  The right for the additional deposit is retained.

The Debtor, declared bankrupt on Sept. 29, can be reached at:

         LLC Veraguth-Motos
         Kreuzlingerstrasse 29
         8555 Mullheim Dorf
         Switzerland

The Bankruptcy Service of Thurgau can be reached at:

         Bankruptcy Service of Thurgau
         8510 Frauenfeld
         Thurgau
         Switzerland


===========
T U R K E Y
===========


HABAS SINAI: Low Leverage Prompts Fitch to Affirm B+ Ratings
------------------------------------------------------------
Fitch Ratings affirmed Turkey-based Habas Sinai ve Tibbi Gazlar
Istihsal Endustrisi A.S.'s local and foreign currency Issuer
Default ratings at 'B+' and National Long-term rating at
'A+(tur)'.  The Outlooks on the ratings are Stable.

The ratings reflect Habas's low leverage (FY05: 1x net
debt/EBITDAR) and sound fixed charge coverage (FY05: 7x EBITDAR
after capital expenditure/fixed charges).  Habas benefits from
its geographic proximity to the growing construction markets in
the Middle East.  The latter accounted for around 60% of Habas's
exports in FY05, reflecting the company's strong customer base
in the region.  Habas has smaller scale, a narrower product
portfolio and lower operating margins compared to global steel
manufacturers and is fully dependent on the international scrap
metal markets for its raw material supply.  With the
commissioning of its 240 MW power plant in 2005, Habas has
become self-sufficient in its electricity needs, with the
ability to sell some of its surplus capacity to the national
grid.

Fitch will continue to monitor the impact of Habas's in-house
power generation capability and the ongoing expansion of its
rolling mill capacity on its operating profitability.  It will
also keep a close watch on the evolution of the scrap and long-
steel price cycles in the medium term.  Fitch expects Habas's
industrial gases business to maintain its strong leading
position in the domestic market and expand its product portfolio
in FY06 and FY07.  Fitch will also continue to monitor the
positive contribution of the industrial gases business to the
overall results of Habas.

Habas owns a 68% stake in Turkey-based Anadolu Bank
('B+'/Stable) with the balance held by the Basaran family, who
are also controlling shareholders of Habas itself.  The stake is
classified as investment on Habas's balance sheet valued at
TRY100 million.  The bank reported YTL38 million net income in
fiscal year 2005.  Fitch fully factors in the potential benefits
and risks associated with Habas's stake in Anadolu Bank.

Established in 1956, Habas is the largest industrial and medical
gases manufacturer and distributor in Turkey.  The company
started producing steel billets at its Aliaga electric arc
furnace plant in 1987 and has added debar and wire rod to its
product portfolio with a current capacity of 2.6 million tons.  
Habas ranks among the three largest long-steel exporters in the
country.  Its other activities include banking and related
finance subsidiaries, liquefied petroleum gas distribution and
heavy machinery engineering and sales.  Habas remains a private
company.


VESTEL ELEKTRONIK: Sound Posture Cues Fitch to Affirm BB- Rating
----------------------------------------------------------------
Fitch Ratings affirmed Turkey-based Vestel Elektronik Sanayi ve
Ticaret A.S.'s foreign and local currency Issuer Default ratings
at 'BB-' (BB minus) with Stable Outlooks.

The ratings reflect Vestel's sustained sound position in the
European television market and growing revenues from both
branded and private label products.

They also reflect the company's expansion in the relatively
higher-margin white goods segment both in Turkey and Russia as
well as sustained geographical sales diversification.  The
company continues to face pricing and margin pressure in the
conventional televisions and electronic consumer goods segments,
continued capital expenditure and working capital requirements.  
Vestel has been reducing its volumes and sales in conventional
televisions and electronic consumer products (mostly DVD
players) since 2004 and focusing on higher-margin flat panel TVs
and white goods.

The Stable Outlook reflects Fitch's expectations that Vestel
will be able to sustain its sales growth, primarily by volumes,
and maintain its EBITDA margin at around 7% after 2006.

Fitch notes that the profitability of both Vestel and Vestel
Beyaz Esya Sanayi ve Ticaret A.S. deteriorated during 2005,
partly due to increased competition and Vestel White's efforts
to build its market share in Turkey.  In 2006, however, Vestel's
interim results show a marked year-on-year increase in its
EBITDA margin, primarily due to the sharp depreciation of the
Turkish lira in May-June 2006.  The currency has stabilised at
around its pre-May levels, causing the currency effect on
Vestel's TRY-based revenues and cost of goods sold to dissipate
by third quarter of 2006.  Fitch will continue to monitor
Vestel's operating profit margins in both the electronics and
white goods businesses.

Free cash flow was negative in fiscal year 2005 as a result of
increased working capital and capacity expansion investments.  
Vestel had US$87 million net debt at end-2005.  Free cash flow
is expected to turn positive in 2006.  Vestel's gross debt-to-
EBITDA is expected to remain manageable at below 2.5x in 2006.  
Vestel Electronics Finance Ltd has two outstanding bonds, rated
'BB-'.  The bonds require Vestel to remain under 4x consolidated
debt/EBITDA, whereby for the purposes of bond covenants
calculation, debt includes trade-related letters of credit
issued for component procurement.  Vestel was in compliance with
the covenants of its two bonds as of H106.

Vestel is a leading manufacturer of television sets with US$3.32
billion sales and US$216 million EBITDA, including US$598
million sales and US$66 million EBITDA in the white goods
business in FY05.  Vestel derived 72% of its sales from exports
in FY05.  Collar Holding BV (Netherlands), a Zorlu Group company
wholly owned by Ahmet Nazif Zorlu, chairman of Zorlu Holding,
has majority control in Vestel with a 51.6% stake.  The
remaining 48.4% of Vestel is quoted on the Istanbul Stock
Exchange.  Vestel conducts its white goods business via Vestel
White where Vestel holds a 72.6% stake with the rest of the
company quoted on the Istanbul Stock Exchange.


=============
U K R A I N E
=============


INDUSTRIALBANK: Fitch Lifts Junk Issuer Default Rating to B-
------------------------------------------------------------
Fitch Ratings upgraded JSCB Industrialbank's ratings to Issuer
Default 'B-' from 'CCC' and to Short-term 'B' from 'C' and
removed them from Rating Watch Evolving.  

INB's Individual rating is affirmed at 'D/E' and removed from
Rating Watch Evolving and the Support rating is affirmed at '5'.
A Stable Outlook is assigned to the IDR.

This upgrade reflects INB's improved diversification by
customer, sector and geographically following the merger with MT
Bank, while the ensuing integration risk appears to have been
reasonably managed.  The merger should mean that the bank is
better placed to expand its franchise and achieve some economies
of scale, although competition remains intense.

Fitch kept INB's ratings on RWE in January 2006, pending the
receipt of additional information from the bank to enable it to
assess the impact, if any, of the planned merger with MT Bank on
INB's ratings.

"While concentration levels have fallen, they remain significant
on both sides of the balance sheet," says Lindsey Liddell,
Director of Fitch's Financial Institutions group.  "There is
also still a significant degree of reliance on related-party
funding.  Furthermore, the merger has resulted in an increase in
INB's funding and operating costs and in its level of problem
loans due to the weaker asset quality of the acquired MT Bank."

INB's ratings continue to reflect INB's high-risk operating
environment, small size (by international standards), and
moderate franchise.  Although reasonable at present, INB's
capitalization is set to fall due to planned growth.

A further upgrade of INB's ratings is unlikely in the near term,
although franchise expansion and increased diversification could
contribute to an improvement in the bank's financial position,
as could a proven track record of managing the risks associated
with planned growth in retail and SME lending.  A sharp
deterioration in capitalization or asset quality, or a sharp
increase in related-party lending could result in a rating
downgrade.

INB operates in Zaporizhzhia, south east Ukraine, one of the
country's key industrial regions.  In fourth quarter 2005, INB
merged with MT Bank, a primarily corporate bank located in
central Ukraine.  At end-June 2006 the merged bank ranked among
the 30-largest Ukrainian banks by total assets.  INB is
ultimately controlled by two private individuals who
additionally hold a stake in Zaporizhstal, a large Ukrainian
steel company.  INB has historically been a corporate bank, to a
large extent servicing related parties, but its strategy is to
diversify its business and expand retail banking.


UKRSIBBANK JSCIB: Fitch Assigns BB- Rating to US$500-Mln Notes
--------------------------------------------------------------
Fitch Ratings assigned HSBC Bank plc's US$500 million 7.75%
limited recourse loan participation notes due December 2011 a
final Long-term 'BB-' (BB minus) rating.

The notes are to be used solely for financing a loan to JSCIB
UkrSibbank (rated Issuer Default (IDR) 'BB-'/Positive Outlook,
Short-term 'B', Support '3', Individual 'D/E') under a loan
agreement.

HSBC only pays noteholders principal and interest, if any,
received from UkrSib under the loan agreement.

According to the National Bank of Ukraine, UkrSib was the third
largest Ukrainian bank by assets at end-September 2006.  UkrSib
is a universal bank with principal activities in corporate and
retail banking in Ukraine.  The bank operates the fourth largest
nationwide branch network, consisting of almost 1,000 outlets
and points of sales in more than 180 cities and towns throughout
Ukraine.  A controlling 51% stake is held by France-based BNP
Paribas (rated Issuer Default 'AA', Short-term 'F1+', Individual
'A/B' and Support '1'), with substantially all of the remaining
49% controlled by two Ukrainian shareholders, Oleksandr
Yaroslavskyy and Ernest Galiyev, who also own a number of large
industrial assets in the country's metallurgy and chemical
industries.


VNESHTORGBANK JSC: Eyes US$4.6 Billion Fresh Capital in 2007 IPO
----------------------------------------------------------------
JSC Vneshtorgbank aims to raise up to RUB120 billion from its
planned initial public offering in 2007, Bloomberg News reports.

VTB will offer to the public 20% to 22% of its total shares,
which could earn around RUR90-RUR120 billion for the company,
Economy Minister German Gref said in a televised government
meeting.  

As reported in the TCR-Europe on Dec. 6, the Russian government
eyes beneficial terms for initial public offerings of state-
controlled banks OAO Sberbank Rossii and Vneshtorgbank.  

As reported, the government plans an IPO for Sberbank in the
first quarter of 2007, and for Vneshtorgbank in the second
quarter.  Russia intends to gradually reduce its holdings in the
two banks.  

Mr. Gref said VTB's IPO will occur in May or June 2007, after
President Vladimir Putin signs the necessary decree.

Bloomberg suggests that Russian banks are raising capital to
boost lending as the country enters a ninth year of economic
expansion and embarks on a multibillion-dollar overhaul of
Soviet-era infrastructure.

The need for capital will swell in 2007, thus investors are
encouraged to invest in state-owned institutions like OAO
Sberbank, Renaissance Capital investment bank told Bloomberg
News.  Sberbank is seeking to raise around US$7 billion in 2007
via a secondary share sale to raise its legal lending limit.

                      About Vneshtorgbank

Headquartered in Moscow, Russia, JSC Vneshtorgbank --
http://www.vtb.ru/-- offers a wide range of banking services  
and conducting operations in both Russian and international
markets.

As of Dec. 31, 2005, the Group had a network of 151 branches,
including 55 branches of VTB, 42 branches of VTB Retail Services
and 54 branches of Industry and Construction Bank, located in
major Russian regions.  The Group operates through three
subsidiaries located in the CIS (Armenia, Georgia, Ukraine),
seven subsidiaries located in Western Europe (Austria, Cyprus,
Switzerland, Germany, Luxembourg, France) and Great Britain and
through five representative offices located in India, Italy,
China, Byelorussia and Ukraine.


VNESHTORGBANK JSC: Fitch Affirms Individual Rating at C/D
---------------------------------------------------------
Fitch Ratings affirmed the ratings of Russia-based JSC
Vneshtorgbank and its London-, Paris- and Cyprus-based
subsidiaries, respectively VTB Europe plc, VTB Bank France SA.
and Russian Commercial Bank (Cyprus), at:

   * JSC Vneshtorgbank:

      -- Foreign currency Issuer Default rating: 'BBB+',
         Short-term foreign currency 'F2', Individual 'C/D',
         Support '2', National Long-term 'AAA(rus)', Local
         currency IDR 'BBB+'.

         The Outlooks on the bank's IDRs and National Long-term
         rating are Stable.

         VTB's IDRs, Short-term and Support ratings are
         underpinned by its majority state ownership, importance
         to the Russian banking system, and Fitch's view of the
         high probability of support from the Russian state in
         case of need.  However, the bank's support floor
         continues to depend on its status, ownership and
         importance to the Russian banking system.  Upside
         potential for the Individual rating is currently
         limited given VTB's exposure to political risk,
         pressured capitalization, transparency issues
         surrounding the bank's largest credit exposures and
         increasing operational and credit risks.

   * VTB Europe plc:

      -- Foreign currency IDR 'BBB', Short-term foreign
         currency, 'F3', Individual 'C' and Support '2'.  

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         In light of VTBE's 89%-owner, VTB, which is Russia's
         second largest, state-owned bank, as well as the
         comfort letter Fitch understands that VTB has provided
         to the UK's Financial Services Authority in respect of
         VTBE (which although not legally binding provides a
         strong moral obligation to support VTBE), there is a
         high probability that support for VTBE would be
         forthcoming from VTB, if needed, flowing ultimately
         from the Russian state.  Fitch does not expect an
         upgrade of VTBE's Individual rating in the near future.
         Downward movement could result from failure to offset
         revenue pressures, a decline in asset quality or an
         increase in risk appetite.

   * VTB Bank France SA.:

      -- Foreign currency IDR 'BBB', Short-term foreign currency
         'F3', Individual 'C/D' and Support '2'.

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         The Issuer Default, Short-term and Support ratings of
         VTBF reflect Fitch's view of the high probability of
         support from VTB, if needed, flowing ultimately from
         the Russian government.  This is based on VTBF's 87%-
         ownerhip by VTB, as well as the assurances provided by
         VTB to the French authorities in respect of VTBF's
         solvency and by the Central Bank of Russia (VTBF's
         former majority owner) in respect of VTBF's liquidity
         (up until end-2007).  Fitch does not expect an upgrade
         of VTBF's Individual rating in the near future.  
         However, downward movement could result from failure to
         offset revenue pressures or should VTB channel upstream
         a large amount of capital from VTBF.

   * Russian Commercial Bank (Cyprus):

         Foreign currency IDR 'BBB', Short-term foreign currency
         'F3' and Support '2'.  The Outlook on the bank's IDR is
         Stable mirroring that assigned to VTB's IDR.  RCBC's
         Individual rating of 'D/E' is affirmed and withdrawn.
         
         RCBC's ratings reflect the high probability of support
         being forthcoming from its 100% shareholder, VTB, in
         case of need.  Under the terms of RCBC's banking
         license granted by the Cypriot authorities, its
         obligations are guaranteed by VTB in the case of RCBC
         being wound up.  However, in light of possible
         timeliness issues relating to enforcement of the
         guarantee, and also its cross-border nature, Fitch
         maintains a one-notch differential between the ratings
         of VTB and RCBC.  The withdrawal of RCBC's Individual
         rating reflects the extent of integration between RCBC
         and its parent, which makes an analysis of RCBC on a
         standalone basis difficult.  Fitch is informed that
         RCBC will remain a direct subsidiary of VTB for the
         foreseeable future, notwithstanding the ongoing
         restructuring of VTB's western European subsidiaries.

Founded in 1990, VTB is Russia's second-largest bank by assets
and equity.  Historically a corporate bank, it is also
aggressively expanding its domestic small and mid-sized
enterprise and retail banking operations.  VTB's strategy is to
become a mid-sized European bank.  Following a number of
acquisitions, VTB group comprises three major Russian banks,
seven banks in Western Europe, including VTBE and VTBF (both
acquired at end-2005) and RCBC, and four banks in CIS countries.  
It also has offices in Africa and plans to open new offices in
Asia.


VNESHTORGBANK JSC: Inks Syndicated Factoring Project with NFC
-------------------------------------------------------------
JSC Vneshtorgbank and the National Factoring Company launched a
Syndicated Factoring joint project.

Cooperation of key players in the banking and factoring markets
suggests that the parties join together their efforts to ensure
expanded access of trade and manufacturing companies to high
quality factoring services.

Within the framework of the project, VTB and NFC will deliver
joint factoring services to customers under tripartite
agreements to be entered into between VTB, NFC and the customer.

And VTB will be engaged in preliminary marketing, negotiating
with companies interested in factoring, handling of customers so
as to gather the package of documents needed for the
transaction, accepting original documents and a 100% funding.  
In its turn, NFC will undertake to arrange sales, to offer
customer consulting, to discount monetary claims, manage
customer's accounts receivable and ensure safety of customers
against credit risks (debtor default risks).

The Commercial Factoring line of products to be offered within
the framework of this project comprises financing for deferred
payment deliveries under the Factoring-Finance, coverage of
credit risks under the Factoring-Guarant, and receivables
assessment and management under the Factoring-Signal.

Partnership of the two companies which are leaders of the
Russian financial market redoubles the opportunities to
elaborate unique offers for the consumer both in terms of
contents and quality of the services, and in terms of
competitive pricing offer formation.

Alliance between VTB and NFC in this project will enable the
Bank to diversify the existing line of products by a
comprehensive package of factoring services and at the same time
to avoid costs related to any factoring infrastructure. In its
turn, NFC will have access to funding and an opportunity to
increase business volumes by tapping resources of the vast
regional network of the VTB Group. Joint efforts of the Bank and
the Company will allow the two parties to gain strong leadership
in the Russian financial market, and will result in a broader
popularity of the commodity lending among households.

Through diversification of its activities, VTB continues
expanding its range of transactions carried out in the Russian
market and delivers its customers a wide range of financial
instruments recognized in international banking practice.  In
addition to conventional banking services, VTB offers its
customers cooperation with its subsidiaries and partners.

To illustrate, in 2002, the Bank founded VTB-Leasing engaged in
financial lease of manufacturing machinery, motor vehicles;
computer, office and trade equipment; real estate and others to
large- and medium-sized companies. Developing such business
lines on a comprehensive basis enables Russian enterprises to
open new opportunities for further growth and for an efficient
finance management system.

The National Factoring Company is the first independent
professional factoring company in Russia holding leadership
positions in the Russian market.

                      About Vneshtorgbank

Headquartered in Moscow, Russia, JSC Vneshtorgbank --
http://www.vtb.ru/-- offers a wide range of banking services  
and conducting operations in both Russian and international
markets.

As of Dec. 31, 2005, the Group had a network of 151 branches,
including 55 branches of VTB, 42 branches of VTB Retail Services
and 54 branches of Industry and Construction Bank, located in
major Russian regions.  The Group operates through three
subsidiaries located in the CIS (Armenia, Georgia, Ukraine),
seven subsidiaries located in Western Europe (Austria, Cyprus,
Switzerland, Germany, Luxembourg, France) and Great Britain and
through five representative offices located in India, Italy,
China, Byelorussia and Ukraine.

                        *     *     *

Following the recent upgrade of the Russian sovereign foreign
and local currency IDRs to BBB+ from BBB, Fitch ratings lifted
Vneshtorgbank's Upgraded to foreign currency and local currency
IDR to BBB+ from BBB with a Stable Outlook and Short-term to F2
from F3.  Fitch also affirmed the Individual rating at C/D and
Support at 2.

Fitch also upgraded Vnesheconombank IDR rating to BBB+ from BBB
with a Stable Outlook; and Short-term to F2 from F3.  Fitch
affirmed the Support rating at 2.


===========================
U N I T E D   K I N G D O M
===========================


1ST CALL: Appoints T. Papanicola to Liquidate Assets
----------------------------------------------------
T. Papanicola of Bond Partners LLP was appointed Liquidator of
1st Call Contractors Limited (formerly 1st Call Maintenance &
Building Services Limited) on Dec. 11 for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         1st Call Contractors Limited
         19 Stewart Street
         Wolverhampton
         West Midlands WV2 4JW
         United Kingdom
         Tel: 01902 829 388
         Fax: 01902 826 922


ACTUANT CORP: Earns US$25.2 Million in 2006 Fourth Quarter
----------------------------------------------------------
Actuant Corporation reported record sales and earnings for its
fourth quarter and fiscal year ended Aug. 31, 2006.

Fourth quarter fiscal 2006 net earnings was US$25.2 million,
compared to US$19.1 million for the fourth quarter of fiscal
2005.  Fiscal 2006 fourth quarter results include a US$4.9
million pre-tax charge covering a portion of the company's
restructuring of its European electrical business, offset by a
US$5.4 million income tax benefit primarily related to the
reversal of a tax valuation allowance for net operating losses.  

Net earnings for fiscal 2006 were US$92.6 million compared to
US$71.3 million for the prior year.  

Fourth quarter sales increased approximately 21% to US$324.6
million compared to US$269.4 million in the prior year, driven
by strong base business growth and sales from acquired
businesses.  Excluding foreign currency exchange rate changes
and sales from acquired businesses, fourth quarter sales
increased approximately 13% from the comparable prior year
period.  Sales for the fiscal year ended Aug. 31, 2006, were
US$1.2 billion, approximately 23% higher than the US$976 million
in the comparable prior year period, reflecting sales volume
added through business acquisitions and strong base business
growth.  Excluding the impact of foreign currency rate changes
and sales from acquired businesses, full year sales increased 9%
year-over-year.

Commenting on the results, Robert C. Arzbaecher, Chief Executive
Officer, stated, "Actuant finished fiscal 2006 strongly, driving
another quarter of significant year-over-year sales and earnings
growth.  The continued profitable growth in our industrial tools
businesses, Enerpac and Hydratight, led the record results.
Additionally, as expected, automotive business revenues grew 63%
for the quarter on sales related to new convertible model
introductions."

Mr. Arzbaecher added, "We are very happy with Actuant's progress
in fiscal 2006 as we continued to execute our business model to
drive strong cash flow and earnings growth.  Our team achieved
9% sales growth excluding currency and acquisitions, deployed
approximately US$129 million in aggregate on acquisitions that
strengthened our existing business, and continued to drive LEAD
(Lean Enterprise Across Disciplines) and organizational
competency throughout the business.  Fiscal 2006's 21% EPS
growth was the fifth consecutive year of EPS growth in excess of
15% since Actuant's creation through a spin-off.  We were also
able to convert those strong earnings into cash, generating over
US$100 million of cash flow, which was again in excess of net
income."

Net debt at Aug. 31, 2006, was approximately US$455 million,
compared to US$460 million at the beginning of the quarter.  The
reduction in net debt during the quarter was attributable to
fourth quarter cash flow of approximately US$29 million,
partially offset by the US$24 million of borrowings to fund the
August 2006 Actown acquisition.  Availability under the
company's revolving credit facility remained strong at
approximately US$170 million as of Aug. 31, 2006.

Year-over-year, Actuant's fiscal 2006 fourth quarter and full
fiscal year operating profit increased to US$38.2 million and
US$154.1 million, respectively, including the fourth quarter
European Electrical restructuring charge of US$4.9 million.  
Year-over-year fourth quarter operating profit margins expanded
from 13.1% to 13.3%, excluding the negative impact of the
restructuring charge in fiscal 2006.  

At Aug. 31, 2006, the company's consolidated balance sheet
showed US$1.2 million in total assets, US$850,410 in total
liabilities, and US$362,965 in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Aug. 31, 2006, are available for
free at http://researcharchives.com/t/s?1730

                     About Actuant Corporation

Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU)
-- http://www.actuant.com/-- is a diversified industrial  
company with operations in more than 30 countries, including
Austria, Hungary, Poland, Italy, Spain, the Netherlands, France,
Russia, Turkey, Germany, and the United Kingdom.  The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies.  Since its creation through a spin-off in
2000, Actuant has grown its sales from USUS$482 million to over
USUS$1 billion and its market capitalization from USUS$113
million to over USUS$1.5 billion.  The company employs a
workforce of approximately 6,000 worldwide.  Actuant Corporation
trades on the NYSE under the symbol ATU.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 24,
Moody's Investors Service affirmed its Ba2 corporate family
rating for Actuant Corp.


ANTHRACITE EURO: Moody's Rates EUR25-Mln Class E Notes at Ba2
-------------------------------------------------------------
Moody's Investors Service assigned definitive ratings to the
Notes issued by Anthracite Euro CRE CDO 2006-1 plc, the first
Commercial Real Estate CDO comprised entirely of European
collateral.  The ratings assigned are:

   -- EUR142.5-million Class A Senior Floating Rate Notes due
      2042: Aaa;

   -- EUR29-million Class B Senior Floating Rate Notes due 2042:
      Aa1;

   -- EUR48.5-million Class C Deferrable Interest Floating Rate
      Notes due 2042: A1;

   -- EUR31-million Class D Deferrable Interest Floating Rate
      Notes due 2042: Baa2; and

   -- EUR25-million Class E Deferrable Interest Floating Rate
      Notes due 2042: Ba2;

The structure also includes an  EUR66.5-million Class F
Subordinated Notes due 2042, which has not been rated by
Moody's.

The definitive ratings address the expected loss posed to
investors by the legal final maturity date of each Class of
Notes.

These definitive ratings are based upon:

   1. An assessment of the credit quality and of the
      diversification of the assets to be included in the
      portfolio;

   2. An assessment of the eligibility criteria, reinvestment
      criteria and portfolio limits applicable to the future  
      additions to the portfolio;

   3. The protection against losses through the subordination of
      the more junior classes of notes to the more senior
      classes of notes;

   4. The expertise of Blackrock Financial Management, Inc. in
      the management of B, C and Mezzanine real estate loans,
      CMBS tranches, REOC and REIT debt; and

   5. The legal and structural integrity of the transaction.

Anthracite Euro CRE CDO 2006-1 p.l.c. is a managed Commercial
Real Estate CDO relating to a EUR335 million portfolio of B, C
and Mezzanine real estate loans, CMBS tranches, REOC and REIT
debt.  The portfolio will be managed by Blackrock Financial
Management, Inc.  Approximately 90% of the portfolio has already
been acquired at the closing date and the remaining portion will
be acquired during the ramp-up period.  Thereafter, the
portfolio of securities will be actively managed and the
portfolio manager may advise the issuer to buy or sell
collateral debt securities.  Any addition or removal of
collateral debt securities will be subject to a number of
portfolio criteria.  The portfolio at closing will comprise B
and C real estate loans and CMBS bonds for respectively 56.6%
and 36.6% of the target par amount.  The underlying assets are
mainly drawn from the U.K. and Germany.  The collateral will be
predominantly denominated in Euros, but may also consist of
assets denominated in other eligible currencies such as British
Pounds, Danish Crowns, Norwegian Crowns, Swedish Crowns and
Swiss Francs.  The FX risk related to all the non Euro assets
will be hedged via perfect asset swaps with eligible counter
parties.


BH FURNISHERS: Names Michael C. Klenlen Liquidator
--------------------------------------------------
Michael C. Klenlen of Armstrong Watson was appointed Liquidator
of BH Furnishers Limited on Dec. 7 for the creditors' voluntary
winding-up procedure.

The company can be reached at:

         BH Furnishers Limited
         98-100
         Duke Street
         Whitehaven
         Cumbria CA287EH
         United Kingdom
         Tel: 01946 599 736
         Fax: 01946 668 42


BLOCKBUSTER INC: S&P Holds Ratings & Revises Outlook to Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on video
rental retailer Blockbuster Inc. to stable from negative.  The
ratings on the Dallas-based company, including the 'B-'
corporate credit rating, were affirmed.

"The outlook revision is based on the company's strengthened
cash flow protection measures as a result of its cost reduction
efforts and lower advertising and promotional expenses," said
Standard & Poor's credit analyst Diane Shand.

Total debt to EBITDA declined to 5.6x in 12 months ended
Sept. 30, 2006, from 8.9x, a year earlier, and EBITDA coverage
of interest increased to 1.9x from 1.4x.  Although cash flow
protection measures are still weak, Standard & Poor's expects
further improvement in the near term due to slightly better
operating results and a reduction of debt by US$150 million.

The company's operating margin increased to 16.7% in the first
nine months of 2006, from 11.7% a year earlier.

The ratings on Blockbuster reflect the risks of operating in a
mature and declining video rental industry, the company's
dependence on decisions made by movie studios, its thin cash
flow protection measures, high leverage, and the technology
risks associated with delivery of video movies to the home.

Industry fundamentals for the video rental market, on which
Blockbuster's profitability is heavily dependent, are weak.  The
company generated 71% of total sales from its movie rental
business in 2005, and its domestic rental same-store sales have
been weak since 2001.  The company was particularly hard hit in
2005 when the rental market dropped at a double-digit rate,
after steadily declining at a low-single-digit rate in the prior
three years.  The contraction in the rental market is
attributable to the elimination of exclusive movie release
rental time windows as a result of the format change to DVD from
VHS, and to studios' pricing DVDs to stimulate retail sales.

In response to weak rental industry dynamics, Blockbuster
eliminated late fees to increase customer traffic.  This move
affected revenues by US$532 million and operating income by an
estimated US$250 million-$300 million in 2005.  In addition, the
company is attempting to transform into a home entertainment
store and has launched a national online and in-store rental
subscription program.  Standard & Poor's has concerns over
whether these initiatives will revive the company's flagging
rental business.


BURNGREAVE COMMUNITY: Creditors Confirm Liquidator's Appointment
----------------------------------------------------------------
Creditors of Burngreave Community Action Trust confirmed on
Dec. 6 the appointment of Tracy Ann Taylor of Abbey Taylor
Limited as the company's Liquidator.

The company can be reached at:

         Burngreave Community Action Trust
         12 Burngreave Road
         Sheffield S3 9DD
         United Kingdom
         Tel: 0114 2728008
         Fax: 0114 2728800


COLLINS & AIKMAN: Excl. Plan-Filing Period Intact Until Jan. 12
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan
extend Collins & Aikman Corporation and its debtor-affiliates'
exclusive periods to:

    -- file a plan of reorganization through and including
       deadline through and including Jan. 12, 2007; and

    -- solicit acceptances of the plan through and including
       March 14, 2007.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
the Debtors sought for a bridge order extending their exclusive
right to file a plan of reorganization and to solicit plan
acceptances.

The Debtors told the Honorable Steven W. Rhodes that the
proposed extension is consistent with their decision to pursue a
cooperative sale process to maximize the value of their estates
and to save jobs.  The Debtors expect the sale process to
culminate with the Plan confirmation.

A brief extension of the Exclusivity Periods is intended to
enable the Debtors to continue the Plan process in an orderly,
efficient and cost-effective manner for the benefit of all
parties.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in   
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 47;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


COLLINS & AIKMAN: Seeks Plan Framework with Customers & JPMorgan
----------------------------------------------------------------
Collins & Aikman Corp. and its debtor-affiliates are pursuing a
cooperative sale process, which they expect will culminate with
the confirmation of a plan.  In connection with this, the
Debtors have worked very hard with its major customers --
including DaimlerChrysler Corporation, Ford Motor Company,
General Motors Corporation and Auto Alliance International, Inc.
-- and JPMorgan Chase Bank, N.A., as agent to the senior,
secured prepetition lenders and as agent to the senior, secured
postpetition lenders, to negotiate an agreement that will form
the basis of a plan.

Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, New
York, relates that the parties have successfully negotiated a
comprehensive customer agreement that, among other things:

   (a) provides for a framework to facilitate the orderly sale
       of a majority of the Debtors' businesses with the support
       of JPMorgan and the Customers;

   (b) provides a meaningful opportunity to save thousands of
       jobs;

   (c) memorializes an agreement among the Debtors, JPMorgan and
       the Customers on the substantive terms of a Chapter 11
       plan; and

   (d) provides a clear framework toward a consensual resolution
       and conclusion to the Debtors' highly complex cases.

While the Debtors believe that the sale of their carpet &
acoustics business, with its strong fundamental business
operations and its consistently positive EBITDA (Earnings Before
Interest, Taxes, Depreciation, and Amortization) results, will
provide them with significant funds, they believe that their
plastics & convertibles businesses require additional support
from the Customers if the Debtors are to maximize the value of
the related assets.

The concessions that the Debtors are seeking from the Customers
in the Customer Agreement would allow the Debtors to continue
operating their Plastics & Convertibles business while, at the
same time, market certain of these assets to allow them to
maximize value, preserve the maximum number of jobs related to
these business lines and wind down in an orderly fashion plants
that are not saleable, Mr. Schrock avers.

Without these concessions, however, the Debtors would have to
sell assets quickly or not at all, which would undeniably
diminish recoveries and create claims against the Debtors by the
Customers -- for the inevitable consequential breach of the
Debtors' various contracts with the Customers -- that would
materially dilute the funds available for distribution to the
Debtors' creditors, Mr. Schrock asserts.

Moreover, if the Debtors cease operations, it likely would
materially disrupt United States automobile manufacturing on a
global basis and cause significant harm to the Customers,
Mr. Schrock adds.  Consequently, it is essential for both the
Debtors and the Customers that the Debtors' plants continue to
operate.

The Customer Agreement will be effective as of Nov. 26, 2006.

The parties agree that the Debtors will file a reorganization
plan that conforms to the terms set forth in a Plan Term Sheet
and is otherwise consistent with the provisions of the Customer
Agreement.  The parties agree to support the Plan so long as the
proposed treatment of the Parties' claims, if any, under the
Plan is not materially worse than the treatment set forth on the
Plan Term Sheet as determined by the respective parties in their
reasonable discretion; and the releases set forth on the Plan
Term Sheet are in the Plan.  However, nothing in the Customer
Agreement will be deemed a solicitation of votes to accept the
Plan, Mr. Schrock informs the U.S. Bankruptcy Court for the
Eastern District of Michigan.

Pursuant to the Funding Protocol and in accordance with the
budget stated in the Customer Agreement:

   (a) from the Effective Date through the earlier of the exit
       date for the Plastics & Convertibles plants, or the
       closing date of a sale to a qualified buyer, the Supplier
       and each major Plastics & Convertibles Customer will pay
       the costs incurred in operating each of the Plastics &
       Convertibles Plants allocable to the production of a
       Customer's component parts;

   (b) on the Effective Date and through the cessation of
       production at the Plastic & Convertibles Plants, the
       Supplier will pay and each of the major Plastics &
       Convertibles Customer will fund 100% of its allocable
       share of the administration expenses; and

   (c) from the Effective Date through the earlier to occur of
       the cessation of production at the Plant or June 30,
       2007, the Supplier will pay and each Major Plastics &
       Convertibles Customer will fund the 100% of its allocable
       share of the Supplier's estate professional fees and
       expenses as well as that of JPMorgan and its advisors.

The "Supplier" will consist of the Debtors and its non-Debtor
subsidiaries and affiliates, excluding Collins & Aikman
Automotive Hermosillo, S.A. de C.V.

JPMorgan consents to the Supplier's use, if the need arises, of
its cash collateral in order to satisfy the Supplier's
obligations to fund its allocable share of the costs.

Mr. Schrock tells the Court that the Customers agree that:

    -- any claim arising from any rights to its repayment
       approved by the Court for the launch costs paid by the
       Customers during the Debtors' Chapter 11 case; junior
       secured claims, and the US$30,000,000 administrative
       loan, will be waived and discharged;

    -- any claim for cap-ex will be treated as provided by the
       agreements relating to the cap-ex funding and the Court
       order approving the agreements or as set forth in the
       Plan Term Sheet;

    -- it will not assert a claim against the Supplier in its
       Chapter 11 cases for special or consequential damages and
       the claims will be waived and discharged;

    -- any other administrative expense claim against the
       Supplier for damages, the amounts paid pursuant to the
       Customer Agreement, and all other special or
       consequential damages arising out of or in any way
       relating to the Supplier's inability to perform, or
       breach of performance, under that Customer's production
       and service contracts relating to the Plastics &
       Convertibles Plants will be waived and discharged; and

    -- any other claim that would otherwise have to be paid in
       cash in full pursuant to Section 1129(a)(9)(A) of the
       Bankruptcy Code under a confirmed Chapter 11 plan will be
       waived and discharged.

Retention bonuses will be paid to certain individuals in
accordance with the Customer Agreement.  The Supplier will pay
and the relevant Customers will fund the Retention Bonuses in
accordance with the Funding Protocol.

The Customers agree not to exercise any set-off or reductions
against postpetition accounts payable, other than ordinary
course set-offs.  However, the agreement will not affect any
set-offs, recoupments or reductions a Customer exercised and
implemented prior to Nov. 1, 2006, against post-petition
accounts payable prior to the Effective Date so long as the
Supplier knew of the amount of the set-offs, recoupments or
reductions based upon the Supplier's receipt of debit memoranda
or other customary notification by the Customer to the Supplier.

The Customers also agree to support the Supplier's efforts to
sell, either as a whole or in part, to one or more qualified
buyers the plants and divisions listed in the Customer
Agreement.

Mr. Schrock relates that a "Supplier Default" occurs if:

   (i) the Supplier fails to meet its obligations to continue to
       produce component parts at a given plant as required by
       the Customer Agreement,

  (ii) the Supplier fails to pay the obligations it has
       undertaken to pay in the Customer Agreement at a given
       plant for a reason other than the Customer's failure to
       fund in a timely manner, or

(iii) the Supplier's secured lenders terminate the Supplier's
       right to use cash collateral or otherwise enforce
       remedies upon an occurrence of an event of default under
       the terms of the Supplier's loan agreements.

No Supplier Default will occur due to:

   (a) a force majeure event,

   (b) lack of funding for cap-ex, tooling or launch costs, or

   (c) the failure of a Customer to fund under the Customer
       Agreement.

If any of the Customers fail to fund, reimburse or pay the
Supplier pursuant to the terms of the Customer Agreement, the
Supplier may, but will not be obligated to, after three business
days written notice to the Customer causing the "Customer
Payment Failure," cease production for the Customer, which
cessation will not be a Supplier Default.

As part of the Customer Agreement, the parties will also sign an
access agreement that provides the Customers with certain rights
to take control of the Supplier's plants and facilities to
produce parts if the Supplier defaults on certain obligations.

Mr. Schrock maintains that the Customer Agreement provides the
Debtors with numerous benefits, including:

   (a) allowing the Debtors to avoid a forced shut-down of their
       operations;

   (b) providing the Debtors with millions of dollars in ongoing
       funding;

   (c) reducing the Customers' administrative claims against the
       Debtors' estates and waiving future claims of the
       Customers relating to the wind-down of certain of the
       Debtors' operations;

   (d) providing the Debtors with Customer-commitments to not
       resource certain products;

   (e) providing the Debtors with a recovery that will maximize
       the value of the Debtors' working capital; and

   (f) providing the Debtors with the support of the Customers
       and the JPMorgan for the sale of the Debtors' businesses
       and a Chapter 11 plan.

Accordingly, the Debtors ask the Court to approve the Customer
Agreement.

The Debtors also ask Judge Rhodes to conduct an expedited
preliminary hearing on their request and authorize them from and
after the entry of an interim order to obtain the financing
provided under the Customer Agreement.

The Debtors ask the Court to conduct the final hearing on their
request on Jan. 11, 2007.

A full text copy of the Customer Agreement is available for free
at http://researcharchives.com/t/s?172a

The Debtors filed under seal certain confidential exhibits to
the Customer Agreement:

     * Exhibit B - Plastics & Convertibles Production Payments
                   and Obligations Budget; Funding Protocol

     * Exhibit C - Administration Expenses and Professional Fees
                   and Expenses Budget

     * Exhibit D - Retention Bonus Budget

     * Exhibit F - Prepetition Payables/Customer-Specific
                   Resolution

     * Exhibit G - Sale Facilities & Determination Dates

     * Exhibit H - Administrative Expenses and Priority Claims
                   that May be Absorbed by the Estate and
                   Secured Lenders' Collateral

     * Exhibit K - Non-Participating Customer Letter

     * Exhibit L - Inventory Bank Build Schedule

Pursuant to Section 107(d) of the Bankruptcy Code, the Debtors
had sought and obtained the Court's authorization to file the
Exhibits under seal.  Mr. Schrock explained to Judge Rhodes that
the Debtors and the Customers would be competitively
disadvantaged in a sale process and in the operation of their
businesses by the disclosure of the information contained in the
Exhibits.

                            Responses

(a) AAI and Ford

Two of the Debtors' Customers, AutoAlliance International, Inc.,
and Ford Motor Company, have been parties to intense
negotiations regarding the Customer Agreement.  

Timothy A. Fusco, Esq., at Miller, Canfield, Paddock and Stone,
P.L.C., in Detroit, Michigan, however, tells the Court that
there are issues that need to be addressed to satisfaction
before AAI and Ford can be in a position to join in the Customer
Agreement.

Mr. Fusco notes that the Motion was filed without AAI's and
Ford's consent, with a hearing scheduled on very short notice.  
Moreover, according to Mr. Fusco, drafts of the Customer
Agreement continue to be circulated and it is almost impossible
to determine which version of the various documents is the most
current one for review and comment.

Both AAI and Ford do not accept the proposed Funding Protocol in
its current form.  If the Court is inclined to give initial
approval to the Motion, any Customer Agreement should be
conditional upon submission of final documents and a reasonable
time for the parties to review, Mr. Fusco suggests to the Court.

(b) Creditors Committee

While the Official Committee of Unsecured Creditors and its
professionals are extremely frustrated at the turn the Debtors'
Chapter 11 cases have taken, the Committee is supportive of the
concept of the Customer Agreement to the extent it will bring
liquidity into the Debtors' estates to facilitate a robust sale
process that will enable the Debtors to realize maximum value
for their assets for the benefit of the Debtors' unsecured
creditors.

Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
New York, New York, relates the Committee, however, is still in
the process of reviewing and analyzing the terms of the Customer
Agreement and the related relief requested by the Debtors.  

Thus, the Committee reserves its rights to file an objection, on
any grounds, to the final approval of the Customer Agreement.

Mr. Freeman states that the Committee is particularly concerned
with the provisions of the Customer Agreement that contemplate
global releases for the Customers.  The Debtors have agreed to
release all claims and causes of action against the Customers
despite the Committee's views throughout the Debtors' cases that
the Customers must be held accountable for their prepetition
conduct; and without quantifying the value of the claims and
causes of action that they have agreed to release.

Since the early stages of the Debtors' cases, the Committee has
been troubled by the Debtors' reluctance to prosecute
potentially valuable causes of action against their Customers.  
The Customer Agreement has amplified the Committee's concerns in
this regard as the Customer Agreement demonstrates the Debtors'
willingness to waive potentially valuable claims and causes of
action that they hold against the Customers, Mr. Freeman says.

Accordingly, according to Mr. Freeman, in connection with the
plan process, the Committee must be afforded the opportunity to
investigate fully any and all claims assertable against the
Customers; and the Debtors must be required to demonstrate that
the releases provide a quantifiable benefit to their estates
well in excess of the value of the potential causes of action
against the Customers.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in   
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 47;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


CORUS GROUP: Auction Looms If Buyer Remains Unnamed by Jan. 31
--------------------------------------------------------------
The contest between Tata Steel U.K. Limited and CSN Acquisitions
Ltd. to acquire Corus Group Plc may turn into an auction if the
company fails to name its buyer by Jan. 30, 2007, Bloomberg News
reports.

The Panel on Takeovers and Mergers said that it requires an
auction procedure to determine Corus' buyer if the "competitive
situation" between Tata Steel and CSN remains unresolved by the
given date.

                           CSN Bid

As reported in the TCR-Europe on Dec. 13, CSN increased its
purchase offer for Corus to US$9.6 billion or 515 pence a share,
topping Tata Steel's 500 pence per share offer.

Companhia Siderurgica's proposed purchase of Corus will be
funded through a BP4.35 billion of debt underwritten by Barclays
Plc, ING Groep NV and Goldman Sachs Group Inc., Bloomberg says,
citing Chief Financial Officer Otavio Lazcano as saying.  
Meanwhile, Companhia Siderurgica promised to pay BP138 million
to fund the deficit in the Corus Engineering Steels Pension
Scheme, Bloomberg says.  Also, the steelmaker will raise the
contribution rate on the British Steel Pension Scheme to 12%
from 10% until March 31, 2009.  The company's success in
acquiring Corus hinges on the unions' support, according to
published reports.

                           Tata Offer

As reported in the TCR-Europe on Dec. 11, the Boards of
Directors of Tata Steel Ltd. and Corus Group plc have agreed the
terms of an increased recommended revised acquisition at a price
of 500 pence in cash per Corus share.

Under the terms of the Revised Acquisition, Corus shareholders
will be entitled to receive 500 pence in cash for each Corus
Share.  This represents a price of 1,000 pence in cash for each
Corus ADS.

The terms of the Revised Acquisition value the entire existing
issued and to be issued share capital of Corus at approximately
GBP4.7 billion and the Revised Price represents:

   -- an increase of approximately 10% compared with 455 pence,
      being the Price under the original terms of the
      Acquisition;

   -- on an enterprise value basis, a multiple of approximately
      7.5x EBITDA from continuing operations for the 12 months
      to Sept. 30, 2006 (excluding the non-recurring pension
      credit of GBP96 million) and a multiple of approximately
      5.9x EBITDA from continuing operations for the year ended
      Dec. 31, 2005;

   -- a premium of approximately 38.7% to the average closing
      mid-market price of 360.5 pence per Corus Share for the
      12 months ended Oct. 4, 2006, being the last business day
      before the announcement by Tata Steel that it was
      evaluating various opportunities including Corus; and

   -- a premium of approximately 22.7% to the closing mid-market
      price of 407.5 pence per Corus Share on Oct. 4, 2006,
      being the last business day before the announcement by
      Tata Steel that it was evaluating various opportunities
      Including Corus.

The terms of the Revised Acquisition remain subject to the
conditions and do not affect Tata Steel's intentions regarding
the business of Corus, its management, employees and locations,
nor the proposals relating to Corus's pension schemes, the Corus
Share Schemes, Convertible Bonds or cancellation of the Deferred
Shares.

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.

                        About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

                       About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.  It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Six years ago, the group suffered from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                          *     *     *

As reported in the TCR-Europe on Nov. 22, Standard & Poor's
Ratings Services kept its 'BB' long-term corporate rating on
U.K.-based steelmaker Corus Group PLC on CreditWatch with
developing implications, following the announcement by Brazil-
based steel maker Companhia Siderurgica Nacional (BB/Watch Neg/-
-) of a proposed takeover offer worth 475 pence per share.

At the same time, the 'BB+' senior secured bank loan ratings and
'BB-' unsecured debt ratings on Corus remain on CreditWatch with
developing implications.  The 'B' short-term corporate credit
rating remains on CreditWatch with positive implications.  All
ratings were placed on CreditWatch on Oct. 18  following the
announcement of an initial bid for the company from India-based
steel manufacturer Tata Steel Ltd.

In a TCR-Europe report on Oct. 25, Moody's Investors Service
placed all ratings of Corus Group plc under review with
direction uncertain following the recommendation of the board of
Corus Group in favor of the proposed acquisition of the entire
capital of Corus Group by Tata Steel Limited.

Ratings affected:

Corus Group plc

    * Ba2 Corporate Family Rating;

    * Ba1 Rating on EUR800 million Secured
      Bank Facilities maturing July 2008;

    * B1 Rating on EUR800 million Unsecured Notes due 2011; and

    * B1 Rating on GBP200 million in Unsecured Notes due 2008.

Moody's last rating action on Corus was the upgrade to
Ba2/Ba1/B1 on May 8.

As reported in the TCR-Europe on Oct. 24, Fitch Ratings changed
the Rating Watch on Corus Group PLC's Issuer Default and senior
unsecured BB- and Short-term B ratings to Negative from
Positive.  This follows the recommendation by the CS Board of an
offer from India-based Tata Steel Ltd. valued at GBP4.3 billion.

The RWN also applies to these debt instruments issued by CS:

   -- CS EUR800 million 7.5% senior notes;
   -- CS EUR307 million 3% convertible bonds; and
   -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds.

Fitch will resolve the Rating Watch following publication of
CS's 2006 results, further details on the level of synergies and
operational benefits that could accrue under the transaction,
and the closure of the deal.


CORUS GROUP: Adjourns Meetings Following Regulator's Ultimatum
--------------------------------------------------------------
The Directors of Corus Group Plc intend to propose resolutions
to shareholders at each of the reconvened Court Meeting and
Extraordinary General Meeting to be held today, Dec. 20, 2006,
to adjourn the meetings until further notice.

Any notice of the adjourned EGM and Court Meeting would be given
as appropriate in accordance with the articles of association of
the Company and the direction of the Court, respectively.

Earlier, the Panel on Takeovers and Mergers announced that the
last date for each of Tata and CSN to announce revised offers
for the Company, should they wish to do so, is Jan. 30, 2007.
The Company would therefore expect the competitive situation to
be resolved, at the latest, on or shortly after that date.

In relation to the Court Meeting and EGM to be held today, the
Corus Directors, who have been advised by Credit Suisse,
JPMorgan Cazenove and HSBC intend, assuming that the current
circumstances are prevailing at that time to:

   -- propose resolutions to Corus Shareholders to adjourn
      those meetings sine die until further notice;

   -- recommend that Corus Shareholders vote in favor of any
      such adjournment resolutions; and

   -- exercise their discretion under any instrument
      appointing any of them as proxy for a Corus Shareholder at
      the reconvened EGM or Court Meeting so as to vote in favor
      of any such adjournment resolutions.

If circumstances change between the time of this announcement
and the times of the reconvened EGM and Court Meeting to be held
today, the Board will reconsider its current intention to
propose and recommend that shareholders vote in favor of
adjournment resolutions and the Corus Directors will reconsider
their intention as to how to vote such proxies as they may hold
for Corus Shareholders thereon.  

Corus Shareholders who wish the discretion afforded by any
existing instrument of proxy to remain in place should take no
action.  Unrevoked proxies will also remain valid at any
adjournment of the reconvened Court Meeting or the EGM.

Any Corus Shareholder who no longer wishes any existing
instrument appointing a Corus Director (or any other person) as
their proxy to remain in place should:

   -- attend and vote at the reconvened Court Meeting and/or EGM
      in person, in which case their proxy will not be capable
      of exercising their votes;

   -- revoke their existing proxy appointment and/or, where
      possible, appoint a different person as their proxy with
      specific instructions on how to vote on any resolutions;
      or

   -- provide different instructions to their existing proxy.

                        About Tata Steel

Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).

              About Companhia Siderurgica Nacional

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate.  The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects.  The group also operates in Portugal and the U.S.


                      About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens.  Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products.  It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.

Six years ago, the group suffered from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt.  Its debt was
thought to stand at GBP1.6 billion in 2002.

After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares.  It
returned to operating profit in the first quarter of 2004.  The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.

                          *     *     *

As reported in the TCR-Europe on Nov. 22, Standard & Poor's
Ratings Services kept its 'BB' long-term corporate rating on
U.K.-based steelmaker Corus Group PLC on CreditWatch with
developing implications, following the announcement by Brazil-
based steel maker Companhia Siderurgica Nacional (BB/Watch Neg/-
-) of a proposed takeover offer worth 475 pence per share.

At the same time, the 'BB+' senior secured bank loan ratings and
'BB-' unsecured debt ratings on Corus remain on CreditWatch with
developing implications.  The 'B' short-term corporate credit
rating remains on CreditWatch with positive implications.  All
ratings were placed on CreditWatch on Oct. 18  following the
announcement of an initial bid for the company from India-based
steel manufacturer Tata Steel Ltd.

In a TCR-Europe report on Oct. 25, Moody's Investors Service
placed all ratings of Corus Group plc under review with
direction uncertain following the recommendation of the board of
Corus Group in favor of the proposed acquisition of the entire
capital of Corus Group by Tata Steel Limited.

Ratings affected:

Corus Group plc

    * Ba2 Corporate Family Rating;

    * Ba1 Rating on EUR800 million Secured
      Bank Facilities maturing July 2008;

    * B1 Rating on EUR800 million Unsecured Notes due 2011; and

    * B1 Rating on GBP200 million in Unsecured Notes due 2008.

Moody's last rating action on Corus was the upgrade to
Ba2/Ba1/B1 on May 8.

As reported in the TCR-Europe on Oct. 24, Fitch Ratings changed
the Rating Watch on Corus Group PLC's Issuer Default and senior
unsecured BB- and Short-term B ratings to Negative from
Positive.  This follows the recommendation by the CS Board of an
offer from India-based Tata Steel Ltd. valued at GBP4.3 billion.

The RWN also applies to these debt instruments issued by CS:

   -- CS EUR800 million 7.5% senior notes;
   -- CS EUR307 million 3% convertible bonds; and
   -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds.

Fitch will resolve the Rating Watch following publication of
CS's 2006 results, further details on the level of synergies and
operational benefits that could accrue under the transaction,
and the closure of the deal.


EUROTUNNEL GROUP: French Court Sets Jan. 15 Plan Hearing
--------------------------------------------------------
The Paris Commercial Court will convene a hearing on Jan. 15,
2007, to consider the approval of Eurotunnel Group's proposed
safeguard plan to restructure the company's GBP6.2 billion debt.

Emmanuel Hess and Laurent Le Guerneve, the two court-appointed
administrators to Eurotunnel, have proposed that the Commercial
Court approve the plan.

"The Safeguard Plan... presents the merits of restructuring the
debt to a level compatible with the capacity of the company to
reimburse, but also presents the advantage of allowing
operations to continue without modification of the levels of
employement or working conditions," Messrs. Hess and Le Guerneve
said.

                      Terms of the Plan

The principal elements of the proposals include:

   1) the creation of a new company, Groupe Eurotunnel, which
      will launch an Exchange Tender Offer (ETO) to Eurotunnel's
      current shareholders.  The shareholders will hold a
      minimum 13% of the equity in Groupe Eurotunnel;

   2) Groupe Eurotunnel will subscribe to a new long-term loan
      of GBP2.840 billion (less than half of the current debt)
      from an international banking consortium;

   3) Groupe Eurotunnel will issue GBP1.275 billion of
      convertible hybrid notes.  The hybrid notes will be
      convertible over a maximum of three years and one month.
      Approximately 61.7% of the hybrids are redeemable by the
      company; and

   4) current Eurotunnel shareholders, who subscribe to the ETO,
      will hold a minimum of 13% of the equity in Groupe
      Eurotunnel.  They can subscribe directly to the hybrid, up
      to a value of GBP60 million (EUR87.7 million) and will
      benefit from free warrants.  The redemption of hybrid
      notes by the company would allow them to increase their
      share of the equity from 13% to 67%.

The plan requires shareholder acceptance of at least 60 percent.  
Reuters reports that some shareholder groups are trying to get a
better deal.  Disgruntled creditors can appeal the court's
decision in other courts.

"We will deal with the protests," Eurotunnel chairman and CEO
Jacques Gounon was quoted by Reuters as saying.  "What is
important is that we have a sound and balanced plan, backed by
creditors, bondholders, suppliers and staff."

On Nov. 27, creditors representing 72% of the financial
establishment committee voted in favor of the company's proposed
safeguard-restructuring plan.  The committee holds 70% of the
company's GBP6.2 billion debt.

The rail operator also obtained a unanimous vote by its
principal suppliers, with 82.17% of bondholders also voting in
favor of the plan.

                         About Eurotunnel

Headquartered in Folkestone, United Kingdom and Calais, France,
Eurotunnel Group -- http://www.eurotunnel.co.uk/-- operates a    
fleet of 25 shuttle trains, which carry cars, coaches and
trucks.  It manages the infrastructure of the Channel Tunnel and
receives toll revenues from train operating companies whose
trains pass through the Tunnel.

The British and French governments have granted Eurotunnel a
concession to operate the Channel Tunnel until 2086.

                        Company Crisis

Eurotunnel's crisis began when costs to build the tunnels that
connect U.K. and France started to overrun before it opened in
1994.  The Iraq war followed, which didn't help as tourist
traffic fell.  In May 2004, Eurotunnel appointed Lazard (global
coordinator) and Lehman Brothers as bank advisors, and Dresdner
Kleinwort Wasserstein as restructuring adviser.

In July 2004, auditor KPMG Audit Plc said the company faced
uncertainty after 2005.  The firm's survival is dependent upon
its ability to put in place a refinancing plan or, if not, to
obtain an agreement with the lenders under the existing Credit
Agreement within the next two years, the auditor said.

Eurotunnel obtained Aug. 2 an order placing the channel operator
under the protection of the Court pursuant to the new safeguard
legislation (Procedure de sauvegarde).


GEO GROUP: Modifies Financing Plan for CentraCore Purchase
----------------------------------------------------------
The GEO Group Inc. has modified its planned method of financing
the acquisition of CentraCore Properties Trust.  Geo Group will
no longer be seeking to amend the indenture for its outstanding
8-1/4% senior unsecured notes, as reported on Nov. 16, 2006.

In addition, GEO Group does not at the present time intend to
proceed with the previously announced private placement of
US$275 million in senior secured notes through a bankruptcy-
remote subsidiary.  Instead, GEO Group plans to finance the CPT
transaction through approximately US$365 million in increased
borrowings under an amended senior secured credit facility and
approximately US$50 million in cash on hand.

After further consideration, GEO Group believes that this method
of financing the acquisition reduces execution risk and provides
GEO Group with increased operational flexibility on a going
forward basis.  GEO Group has received a firm commitment from
BNP Paribas to finance the amended senior secured credit
facility.

Based in Boca Raton, Florida, The GEO Group, Inc. (NYSE: GEO)
delivers correctional, detention and residential treatment
services to federal, state and local government agencies around
the globe.  GEO has government clients in the USA, Australia,
South Africa, Canada and the United Kingdom.  GEO Group's
worldwide operations include 62 correctional and residential
treatment facilities, with a total design capacity of
approximately 52,000 beds.

                        *     *     *

On Sept. 26, 2006, Moody's Investors Service affirmed GEO
Group's Ba3 corporate family and senior secured debt ratings,
with a stable outlook.  The rating agency also affirmed GEO
Group's B1 senior unsecured debt rating.  GEO Group is planning
to acquire CentraCore Properties Trust in a debt-financed
transaction.  CentraCore, a REIT, is GEO Group's main landlord.


REFCO INC: Plan Satisfies 13 Steps for Confirmation, Court Rules
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
confirmed Refco, Inc., and its debtor-affiliates' Modified Joint
Chapter 11 Plan on Dec. 15, 2006.

Marc S. Kirschner, the Chapter 11 Trustee for Refco Capital
Markets, Ltd.; and the Official Committee of Unsecured Creditors
and the Additional Committee are co-proponents of the Plan.

           Plan Satisfies 16 Steps Toward Confirmation

Judge Drain finds that the Plan satisfies the 16 statutory
requirements necessary to confirm a plan pursuant to Section
1129 of the Bankruptcy Code:

A. The Plan complies with the applicable provisions of Section
   1129(a)(l), which encompasses the requirements of Sections
   1122 and 1123 governing classification of claims and
   interests and contents of the Plan.

   The Plan provides for (i) the impairment of certain classes
   of claims and interests, while leaving others unimpaired,
   hence modifying the rights of certain holders of claims and
   interests and leaving the rights of others unaffected, and
   (ii) the assumption and assignment or rejection of executory
   contracts and unexpired leases to which the Debtors are
   parties.

   In addition, in accordance with Section 1123(b)(6), the Plan
   includes additional appropriate provisions that are
   consistent with applicable provisions of the Bankruptcy Code,
   including, but not limited to:

      * the Plan provisions governing distributions on account
        of Allowed Claims;

      * the Plan provisions establishing that confirmation will
        not discharge claims against the Debtors;

      * the preservation of rights of action and the creation of
        the Litigation Trust to pursue the Contributed Claims;

      * the disposition of executory contracts and unexpired
        leases;

      * retention of jurisdiction by the Court over certain
        matters after the Plan Effective Date; and

      * the means for implementation of the Plan.

B. Refco has complied with the Section 1129(a)(2) requirements
   regarding solicitation of acceptances of the Plan.

   Judge Drain concludes that the impact of the proposed
   settlement between the Plan Proponents and the Ad Hoc
   Committee of Equity Security Holders on those Classes that
   were solicited to vote is not "material" or "adverse" enough
   to warrant re-solicitation.  Judge Drain notes that no value
   was attributed to the Litigation Trust Interests in the
   original Disclosure Statement.  Any speculation as to the
   value of those interests was expressly disavowed by the
   Plan's liquidation analysis.  As a result, none of the
   Claimholders in Classes receiving Tranche A Litigation Trust
   Interests could possibly have predicated its vote for the
   Plan on a precise estimate of the value of its Litigation
   Trust recovery.

C. The Plan has been proposed in good faith, with the legitimate
   and honest purposes of maximizing the value of the Debtors'
   estates and the recovery to Claimholders.  The Plan also
   provides for the distribution of the Debtors' assets and the
   wind-down of the Debtors' corporate affairs.  Accordingly,
   the Plan complies with Section 1129(a)(3).

D. Any payment made or to be made by the Plan Proponents, or by
   a person issuing securities or acquiring property under the
   Plan, for services or for costs and expenses in or in
   connection with the Debtors' Chapter 11 case, or in
   connection with the Plan and incident to the Debtors' case,
   has been approved by, or is subject to the approval of, the
   Court as reasonable, thereby satisfying Section 1129(a)(4).

   Pursuant to interim application procedures established under
   Section 331, the Court has authorized and approved the
   payment of certain fees and expenses of professionals in the
   Debtors' cases, which fees remain subject to final review by
   a fee committee and the Court for reasonableness.

E. The manner of selection of (i) a Plan administrator, who will
   be the sole officer and director or manager, as applicable,
   of the Reorganized Debtors, and (ii) an RCM Trustee -- as the
   party responsible for the administration of the RCM estate --
   is appropriate.  Accordingly, the selection process satisfies
   Section 1129(a)(5) because the Plan Administrator will be
   appointed by the Joint Sub-Committee, and the RCM Trustee was
   appointed by Court order.  The RCM Trustee is to wind down
   the RCM Estate in accordance with the RCM Settlement
   Agreement.

F. The Plan satisfies Section 1129(a)(6) because it does not
   provide for any change in rates over which a governmental
   regulatory commission has jurisdiction.

G. In accordance with Section 1129(a)(7), the Plan satisfies the
   "best interests" test as to each Class of Impaired Claims and
   Interests because the estimated Plan recovery percentage for
   all creditors is not less than, and in most cases greater
   than, recoveries under a hypothetical Chapter 7 liquidation.

H. Holders of Class 7 Subordinated Claims against one or more of
   the Contributing Debtors and Class 8 Old Equity Interests,
   Holders of Class 7 FXA Subordinated Claims against FXA and
   Holders of Class 9 RCM Subordinated Claims against RCM are
   deemed to have rejected the Plan because they are not
   entitled to receive or retain any Distribution or property
   under the Plan on account of their Claims or Interests.  
   Holders of FXA Class 5(a) Claims voted to reject the Plan.

   Although Section 1129(a)(8) has not been satisfied with
   respect to FXA Class 5(a) and the Rejecting Classes, the Plan
   is confirmable because the Plan satisfies Section 1129(b)
   with respect to those Classes.  Section 1129(b) provides that
   the Court may cram down a plan over a dissenting vote of
   impaired classes of Claims or Interests as long as a plan
   does not "discriminate unfairly" and is "fair and equitable"
   with respect to the dissenting class.

   Judge Drain holds that the Plan Proponents presented
   uncontroverted evidence at the Confirmation Hearing that the
   Plan does not discriminate unfairly and is fair and equitable
   with respect to the Rejecting Classes as required by the
   "cramdown" requirements of Section 1129(b)(1).  Accordingly,
   Judge Drain says, upon Confirmation and the occurrence of the
   Effective Date, the Plan will be binding upon the members of
   the Rejecting Classes and FXA Class 5(a).

I. The Plan meets the requirements under Section 1129(a)(9)
   because it provides for:

      (1) payment by the Debtors of Administrative Claims, in
          full, in cash;

      (2) payment of the unpaid portion of the Non-Tax Priority
          Claims in full, in cash;

      (3) each Allowed Priority Tax Claimholder to receive:

             * cash equal to the unpaid portion of the Allowed
               Priority Tax Claim;

             * treatment in any other manner such that the
               Allowed Priority Tax Claims will not be impaired
               pursuant to Section 1124; or

             * other treatment as agreed upon in writing.

J. At least one Class of Claims against each Debtor has voted to
   accept the Plan.  Judge Drain notes that:

      (a) all impaired voting Classes have voted to accept the
          Plan with respect to each of the Contributing Debtors;

      (b) Classes 4 and 6 have voted to accept the Plan with
          respect to Refco F/X Associates, LLC; and

      (c) all impaired voting Classes have voted to accept the
          Plan with respect to RCM.

   Accordingly, the requirement under Section 1129(a)(10) has
   been met.

K. The Plan is feasible and meets the requirements of Section
   1129(a)(11) because it includes a means for liquidating a
   debtor's property.

L. All fees payable under 28 U.S.C. Section 1930 have been paid
   or will be paid on the Effective Date, thereby satisfying
   Section 1129(a)(12).

M. Under the Plan, all benefit plans, policies and programs of
   the Debtors applicable to their retirees and the retirees of
   its subsidiaries are treated as executory contracts that are
   subject to rejection.  Accordingly, the requirements of
   Section 1129(a)(13) are satisfied.

N. Refco is not required by a judicial or administrative order,
   or by statute, to pay a domestic support obligation.  Section
   1129(a)(14) is, therefore, inapplicable.

0. Refco is not an individual, and accordingly, Section
   1129(a)(15) is inapplicable.

P. Refco is a moneyed, business, or commercial corporation, and
   Section 1129(a)(16) is, thus, inapplicable.

A full-text copy of the Court's Findings of Fact, Conclusions of
Law, and Order Confirming the Modified Joint Chapter 11 Plan is
available at no charge at http://researcharchives.com/t/s?174e

                    Admin. Claims Bar Date Set

Unless previously paid before the Plan's Confirmation Date, all
requests for payment of Administrative Claims against all
Debtors and RCM that were not previously filed must be submitted
no later than 30 days after the Effective Date or be forever
barred.

The Reorganized Debtors and the RCM Trustee will have until the
later of (i) 60 days after the Effective Date or (ii) 30 days
after the filing of the Administrative Claim, to object to those
claims.

                       RCM Case Conversion

Judge Drain finds that if RCM's Chapter 11 case is converted to
a Chapter 7 case, all aspects of the Plan relating to RCM,
including all settlements, compromises and releases, will
nonetheless be and remain binding with full force and effect as
a settlement between the RCM Chapter 7 estate and the Debtors'
estates.  The Plan Effective Date will constitute the effective
date of the settlement between the RCM Chapter 7 estate and the
Estates of other Debtors.  The conversion of RCM's Chapter 11
case before the Effective Date will not impair the Effective
Date occurring with respect to the other Debtors.

                Other Plan Provisions Are Approved

Judge Drain rules that the remaining property of the Debtors'
estates, other than the Contributed Claims, which will be
transferred to and vest in the Litigation Trust, will not revest
in the Debtors or RCM on or following the Confirmation Date or
Effective Date, but will remain property of the Estates and
continue to be subject to the Court's jurisdiction until
distributed to Allowed Claimholders.

The Court also appoints RJM LLC, a New Jersey Limited Liability
Company, as the Plan Administrator.  RJM was designated by the
Joint Subcommittee.

In the event that, after the Effective Date RJM determines that
it is appropriate, each of the Affiliate Debtors will be
dissolved or merged with and into Refco Inc., with the parent
company as the surviving entity.

The Affiliate Debtors and FXA -- until they are wound up and
potentially merged with and into Refco -- will continue to exist
as Reorganized Refco, Reorganized FXA or the applicable
Reorganized Affiliate Debtor, after the Effective Date.

On the Effective Date, all executory contracts or unexpired
leases of the Debtors will be deemed rejected in accordance with
Sections 365 and 1123.

Moreover, Judge Drain rules that on the Effective Date, the
Reorganized Debtors and Post-Confirmation RCM will fund a
segregated bank account consisting of 110% of:

   (x) the amount of any holdbacks on previously billed and paid
       amounts, provided, however, that the 10% holdback of fees
       is released and may be remitted to certain professionals;
       and

   (y) the amount of estimated additional fees and expenses
       expected to be incurred by each Professional through the
       Effective Date.

All settlements of disputes embodied in the Plan are approved as
fair, equitable, reasonable and in the best interests of the
Debtors, the Reorganized Debtors and their estates.

Notwithstanding the transfer of claims to the Litigation Trust,
Judge Drain clarifies that the claims will not be merged into a
single entity, but will be deemed asserted on behalf of each
applicable Estate holding that claim immediately prior to
contribution, and will remain separate and distinct from other
Estates in connection with the prosecution.

Pursuant to Section 1123(b)(3), Judge Drain approves the Plan
Proponents' appointment of Mr. Kirschner as Litigation Trustee
to represent each of the Estates.  The Litigation Trustee will
be deemed the successor-in-interest to each of the Contributing
Debtors, FXA, and the RCM Trustee.

In addition, Mr. Kirschner will also act as trustee in the
Private Actions Trust to hold certain claims and causes of
action against third parties owned by holders of Claims or
Interests against RCM or the Debtors, and which claims, even
after contribution, are not assets of the Estates.

             Court Addresses Confirmation Objections

Judge Drain rules that all Plan confirmation objections that
have not been withdrawn, waived, or settled are overruled on the
merits.

(1) Director and Officer Indemnification Objections

Judge Drain says timely filed Claims arising in favor of present
or former officers or directors under contract, statute, or
entity governance documents of any of the Debtors, will entitled
to be asserted against the estate of each and every Debtor to
the same extent as provided for under applicable law.

Nothing in the Plan or Confirmation Order will (i) permit
Officer and Director Claims to be treated as Subordinated Claims
or otherwise subordinated, or (ii) be construed to prevent
present or former directors and officers of the Debtors from
seeking and obtaining coverage and payments from insurance
policies of Refco Inc. or from insurance policies of any other
Refco Entity.

(2) New York Financial and Hillier Capital Objections

Judge Drain directs RCM to transfer to the FXA Estate
US$2,000,000 on the Effective Date to settle the dispute.

Judge Drain also directs the Plan Administrator to form a
committee of FXA customers who did not do business with FXA in
Japan to oversee and direct the litigation involving FXA assets
in Japan.  New York Financial will serve as the chair of the
committee; Hillier Capital is appointed as member of that
committee.

Judge Drain says the Non-Japan FXA Customer Committee will have
consent rights with respect to any settlement regarding the
litigation involving FXA assets in Japan.  Furthermore, all
reasonable expenses born in connection with the role of chair of
the Non-Japan FXA Customer Committee will be born by the FXA
Estate.

New York Financial and Hillier Capital are granted an Allowed
Administrative Expense Claim against the FXA Estate pursuant to
Section 503(b) in an aggregate collective amount not to exceed
US$200,000.

(3) West Loop Objection

Judge Drain notes that West Loop Associates, LLC, will be paid
US$3,750,000 in cash by the Refco LLC estate on or before the
Effective Date.  West Loop will release all claims against the
Debtors and against Refco LLC.

In addition, West Loop will be barred from bringing any action
against any third party as to the potential matters set forth in
the Plan.  However, West Loop will expressly retain all rights
to bring actions against Mark Goodman & Associates; 550 West
Jackson Associates Limited Liability Company; Mark Goodman;
Phillip R. Bennett; Santo Maggio; and Grant Thornton.

The Court grants West Loop a US$20,000,000 Claim against Refco
Group Ltd.  The Claim will be satisfied in full by distribution
of the Litigation Trust Interests allocable to the Claim.  
However, Judge Drain says, all Litigation Trust Interests
distributable on account of West Loop's Allowed Claim will be
deemed to have been assigned by West Loop to the Contributing
Debtors for distribution to Holders of Allowed Contributing
Debtors General Unsecured Claims.

The Contributing Debtors will transfer US$1,875,000 from
Contributing Debtors Cash Distribution to the RCM Trustee for
addition to the RCM Cash Distribution.

(4) Securities Plaintiff Objection

Judge Drain clarifies that nothing in the Plan or the
Confirmation Order will be deemed to release, enjoin or bar any
claims or the prosecution of any claims asserted in In re Refco
Securities Litigation, Case No. 05-civ-8626 (SDNY), against:

   -- any of the Secured Lender Releasees that acted as an
      underwriter, book running manager or initial purchaser in
      connection with the underwriting, offering, distribution,
      or sale of the 9% Senior Subordinated Notes due 2012
      issued by certain of the Debtors or of any equity
      securities of Refco Inc., with respect to any act or
      failure to act by any Secured Lender Releasee; and

   -- other non-Debtor defendants in the Securities Litigation,
      except the Released Parties identified in the Plan,
      the Contributing Non-Debtor Affiliates, and the
      Contributing Non-Debtor Affiliate Management, to the
      extent that the Lead Plaintiffs or the putative class
      members receive a distribution under the Modified Plan.

(5) FXCM Objection

Judge Drain also clarifies that nothing in the Plan will impair
the right of FXCM Sellers from arguing that they are entitled to
an equitable remedy of rescission of RGL's purchase of the FXCM
Equity Stake.  However, any action seeking that remedy will be
heard by the Bankruptcy Court unless it has permitted the FXCM
Sellers to bring that action in a different forum.

                   Allocation of BAWAG Proceeds

The Court authorizes the Debtors to utilize the BAWAG P.S.K.
Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse
Aktiengesellschaft  Proceeds in accordance with the Plan and the
BAWAG Allocation Order.  The BAWAG Proceeds may be used to pay
the obligations owing to RCM under the Cash Management Advance
Agreement dated Oct. 16, 2006, and to implement the other
Distributions contemplated in the Plan.  For purposes of making
Cash Distributions, the BAWAG Contingent Proceeds will be used
to satisfy the Senior Subordinated Note Distribution to the
extent the funds are available to the Estates prior to the
payment in full of the Senior Subordinated Note Distribution.

                          About Refco Inc.

Based in New York, Refco Inc. (OTC: RFXCQ) --
http://www.refco.com/-- is a diversified financial services   
organization with operations in 14 countries and an extensive
global institutional and retail client base.  Refco's worldwide
subsidiaries are members of principal U.S. and international
exchanges, and are among the most active members of futures
exchanges in Chicago, New York, London and Singapore.  In
addition to its futures brokerage activities, Refco is a major
broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and
international equities, emerging market debt, and OTC financial
and commodity products.  Refco is one of the largest global
clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

On Oct. 6, 2006, the Debtors filed their Amended Plan and
Disclosure Statement.  On Oct. 16, 2006, the gave its tentative
approval on the Disclosure Statement and on Oct. 20, 2006, the
Court Clerk entered the written disclosure statement order.

The hearing to consider confirmation of Refco, Inc., and its
debtor-affiliates' plan is set for Dec. 15, 2006.  Objections to
the plan, if any, must be in by Dec. 1, 2006.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada.  Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner
is represented by Bingham McCutchen LLP.  RCM is Refco's
operating subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262).

Refco Commodity Management, Inc., formerly known as CIS
Investments, Inc., a debtor-affiliate of Refco Inc., filed for
chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No.
06-12436).


SEVERSTAL OAO: Gains RUR24.8 Billion from New Share Issue
---------------------------------------------------------
OAO Severstal has completed the placement of its additional
shares, RosBusinessConsulting reports.

The company raised around RUR24.83 billion after placing a total
of 76,916,692 shares at RUR322.81 per share.

Company shareholders exercised their pre-emptive rights to
acquire 90.49% of the additional share issue.  Severstal was
unable to sell its shares to other buyers at RUR332.74, RBC
relates.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel  
producer, with steel production of 17.1 million tons in 2005.  
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of around EUR150 per ton.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                        *     *     *

As reported in the TCR-Europe on July 5, Standard & Poor's
Ratings Services kept its 'B+' long-term corporate credit rating
on Russian steelmaker OAO Severstal on CreditWatch with positive
implications following the consolidation of the company's mining
assets.

The rating was placed on CreditWatch on May 26, following the
announcement of a previously agreed merger between Severstal and
Luxembourg-based steelmaker Arcelor S.A.  This merger was
cancelled on June 30.

As reported in the TCR-Europe on June 28, Fitch Ratings
maintained the Rating Watch Positive status for OAO Severstal's
ratings of Issuer Default BB-, senior unsecured BB-, Short-term
B and National Long-term A+.

Severstal, which recently raised just over US$1 billion placing
shares in London, plans to acquire more assets on the way to
becoming the world's second-largest steel maker, its 41-year-old
billionaire owner, Alexei Mordashov, has said.


SEVERSTAL OAO: Appoints Five Non-Executive Directors to Board
-------------------------------------------------------------
OAO Severstal disclosed that all the resolutions were passed at
the company's Dec. 15 Extraordinary General Meeting, including
those in relation to the appointments to the Board of Directors.

These appointments are made as part of Severstal's new corporate
governance arrangements designed to comply with the key elements
of the U.K.'s corporate governance standards.

Following these appointments, Severstal will have a 10-person
Board.

Five Executive Directors:

   -- Alexey Mordashov,
   -- Mikhail Noskov,
   -- Vadim Makhov,
   -- Anatoliy Kruchinin, and
   -- Vadim Shvetsov.

Five Independent Non-Executive Directors:

   -- Chris Clark, Independent Director and Non-executive
      Chairman of the Board;

   -- Martin Angle, Independent Director;

   -- Rolf Stomberg, Senior Independent Director;

   -- Ron Freeman, Independent Director; and

   -- Dr Peter Kraljic, Independent Director.

The first meeting of the Board of Directors was held immediately
after the Extraordinary General Meeting.

The Board of Directors has elected Chris Clark as the Chairman
of the Board and appointed Chairmen and members of Audit and
Remuneration committees.

                        About Severstal

Headquartered in Cherepovets, Russia, OAO Severstal --
http://www.severstal.com/-- is the country's largest steel  
producer, with steel production of 17.1 million tons in 2005.
The Company owns Severstal North America, the fifth largest
integrated steel maker in the U.S. with 2005 production of 2.7
million tons, and Lucchini, Italy's second largest steel group
with 2005 production of 3.5 million tons.  Severstal is one of
the world's lowest cost and most profitable steel producers,
with 2005 EBITDA per ton of around EUR150 per ton.

As of Dec. 31, 2005, Severstal had US$10.75 billion in total
assets, US$3.66 billion in total liabilities and US$7.09 billion
in total shareholders' equity.

                          *     *     *

As reported in the TCR-Europe on July 5, Standard & Poor's
Ratings Services kept its 'B+' long-term corporate credit rating
on Russian steelmaker OAO Severstal on CreditWatch with positive
implications following the consolidation of the company's mining
assets.

The rating was placed on CreditWatch on May 26, following the
announcement of a previously agreed merger between Severstal and
Luxembourg-based steelmaker Arcelor S.A.  This merger was
cancelled on June 30.

As reported in the TCR-Europe on June 28, Fitch Ratings
maintained the Rating Watch Positive status for OAO Severstal's
ratings of Issuer Default BB-, senior unsecured BB-, Short-term
B and National Long-term A+.


SITEL CORPORATION: Earns US$7.4 Million in 2006 Second Quarter
--------------------------------------------------------------
Sitel Corp. reported US$7.4 million of net income on US$278.3
million of revenues for the quarter ended June 30, 2006,
compared with US$2.6 million of net income on US$251.8 million
of revenues for the same period in 2005.

Revenue increased US$26.5 million, mainly due to the US$23.7
million increase in European revenue and the US$4.3 million
increase in Latin America revenue, offset by a US$1.4 million
decrease in Asia Pacific revenue.

North American revenue in the first quarter of 2006 remained
consistent compared to the same period in 2005.  A decrease of
US$24.3 million of revenue resulting from the loss of General
Motors was offset by US$24.2 million of revenue growth primarily
in customer acquisition, technical support and risk management.  
The weakening of the U.S. dollar versus the Canadian dollar
resulted in US$600,000 of the increase.

European revenue increased US$23.7 million for the three months
ended June 30, 2006, compared to the same period in 2005.  
Higher sales volumes from new and existing clients resulted in
an increase in revenue of US$24.2 million for the three months
ended June 30, 2006, compared to the same period in 2005.  The
strengthening of the U.S. dollar versus the British pound and
Euro partially offset this increase by US$500,000.

Latin America revenue increased US$4.3 million for the three
months ended June 30, 2006, compared to the same period in 2005.  
Higher sales volumes from new and existing clients resulted in
an increase in revenue of US$3.4 million, while the weakening of
the US dollar versus the Brazilian Real resulted in the
remaining US$900,000 of the increase.

Asia Pacific revenue decreased US$1.4 million for the three
months ended June 30, 2006, compared to the same period in 2005.   
Lower sales volumes with existing clients resulted in a decrease
in revenue of US$300,000, while the strengthening of the U.S.
dollar versus the New Zealand and Australian dollars resulted in
the remaining US$1.1 million of the decrease.

The US$4.8 million increase in net income is primarily due to
the US$26.5 million increase in revenues, the US$6 million gain
on settlement with a business partner, the US$1.1 million
decrease in interest expense, the US$1.3 million increase in
equity in earnings of affiliates, and the US$549,000 increase in
other income, offset by the US$28.4 million increase in
operating expenses(excluding the effects of the US$6 million
settlement gain).  The increase in operating expenses is
primarily due to the US$25.1 million increase in direct labor
and telecommunications expense.

Interest expense decreased US$1.1 million or 34.0% due to a gain
of US$1.4 million for a reduction in interest on a Brazil tax
obligation being recorded as a reduction of these expenses.  
This gain was partially offset by higher amortization of debt
acquisition costs.  

Equity in earnings of affiliates increased US$1.3 million for
the three months ended June 30, 2006, compared to the same
period in 2005 primarily due to the US$1.2 million in insurance
proceeds received by the company's India joint venture related
to flood damage in 2005.

Other income increased primarily as a result of fluctuations in
foreign currency re-measurement gains arising from monetary
assets and liabilities denominated in currencies other than a
business unit's functional currency.

The increase in direct labor and telecommunications expense was
primarily the result of higher ramp-up costs of new client
programs, particularly in Europe, and a change in the mix of
services provided in the three months ended June 30, 2006,
compared to the same period in 2005.

At June 30, 2006, the company's balance sheet showed US$429.2
million in total assets, US$288.5 million in total liabilities,
US$5.8 million in minority interests, and US$134.9 million in
total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2006, are available
for free at http://researcharchives.com/t/s?1733

              Merger Agreement with ClientLogic Corp.

On Oct. 13, 2006, the company and ClientLogic Corporation
disclosed that they have signed a definitive merger agreement.
Under the terms of the agreement, a newly formed subsidiary of
ClientLogic will merge with the company and pay US$4.05 per
share in cash for all of the outstanding common stock of the
company.  The board of directors of each company has unanimously
approved the transaction.  The transaction is expected to be
completed in the first quarter of 2007 and is subject to
customary closing conditions, including approval of the
company's shareholders and regulatory clearances.  The company's
board of directors has recommended to its shareholders that they
vote in favor of the transaction.  

                       About Sitel Corp.

Sitel Corp. (NYSE:SWW) -- http://www.sitel.com/-- provides  
outsourced customer support services.  On behalf of many of the
world's leading organizations, SITEL designs and improves
customer contact models across its clients' customer
acquisition, retention and development cycles.  SITEL manages
approximately two million customer interactions per day via the
telephone, e-mail, Internet and traditional mail.   SITEL has
over 42,000 employees in 101 global contact centers, utilizing
more than 32 languages and dialects to serve customers in 56
countries including Argentina, Denmark, Panama, Philippines, and
the United Kingdom, among others.

                           *     *     *  

Sitel Corp. carries Standard & Poor's Rating Services 'B'
corporate credit rating.


TRIPLE BLACK: Brings In Joint Liquidators from Ashcrofts
--------------------------------------------------------
Harjinder Johal and George Michael of Ashcrofts were appointed
Joint Liquidators of Triple Black Limited on Dec. 12 for the
creditors' voluntary winding-up proceeding.

Ashcrofts -- http://www.ashcrofts.net/-- offers hands on  
expertise specializing in Business Recovery and Insolvency
providing positive solutions for negative situations.


UMANO JEWELLERY: Taps Liquidator from BN Jackson Norton
-------------------------------------------------------
Shirley Angela Jackson of BN Jackson Norton was appointed
Liquidator of Umano Jewellery Limited on Dec. 12 for the
creditors' voluntary winding-up proceeding.

The company can be reached at:

         Umano Jewellery Limited
         86 Avondale Road
         Bromley
         Kent BR1 4EZ
         United Kingdom
         Tel: 020 8402 2205


VTB EUROPE: Fitch Affirms Individual Rating at C
------------------------------------------------
Fitch Ratings affirmed the ratings of Russia-based JSC
Vneshtorgbank and its London-, Paris- and Cyprus-based
subsidiaries, respectively VTB Europe plc, VTB Bank France SA.
and Russian Commercial Bank (Cyprus), at:

   * JSC Vneshtorgbank:

      -- Foreign currency Issuer Default rating: 'BBB+',
         Short-term foreign currency 'F2', Individual 'C/D',
         Support '2', National Long-term 'AAA(rus)', Local
         currency IDR 'BBB+'.

         The Outlooks on the bank's IDRs and National Long-term
         rating are Stable.

         VTB's IDRs, Short-term and Support ratings are
         underpinned by its majority state ownership, importance
         to the Russian banking system, and Fitch's view of the
         high probability of support from the Russian state in
         case of need.  However, the bank's support floor
         continues to depend on its status, ownership and
         importance to the Russian banking system.  Upside
         potential for the Individual rating is currently
         limited given VTB's exposure to political risk,
         pressured capitalization, transparency issues
         surrounding the bank's largest credit exposures and
         increasing operational and credit risks.

   * VTB Europe plc:

      -- Foreign currency IDR 'BBB', Short-term foreign
         currency, 'F3', Individual 'C' and Support '2'.  

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         In light of VTBE's 89%-owner, VTB, which is Russia's
         second largest, state-owned bank, as well as the
         comfort letter Fitch understands that VTB has provided
         to the UK's Financial Services Authority in respect of
         VTBE (which although not legally binding provides a
         strong moral obligation to support VTBE), there is a
         high probability that support for VTBE would be
         forthcoming from VTB, if needed, flowing ultimately
         from the Russian state.  Fitch does not expect an
         upgrade of VTBE's Individual rating in the near future.
         Downward movement could result from failure to offset
         revenue pressures, a decline in asset quality or an
         increase in risk appetite.

   * VTB Bank France SA.:

      -- Foreign currency IDR 'BBB', Short-term foreign currency
         'F3', Individual 'C/D' and Support '2'.

         The Outlook on the bank's IDR is Stable mirroring that
         assigned to VTB's IDR.

         The Issuer Default, Short-term and Support ratings of
         VTBF reflect Fitch's view of the high probability of
         support from VTB, if needed, flowing ultimately from
         the Russian government.  This is based on VTBF's 87%-
         ownerhip by VTB, as well as the assurances provided by
         VTB to the French authorities in respect of VTBF's
         solvency and by the Central Bank of Russia (VTBF's
         former majority owner) in respect of VTBF's liquidity
         (up until end-2007).  Fitch does not expect an upgrade
         of VTBF's Individual rating in the near future.  
         However, downward movement could result from failure to
         offset revenue pressures or should VTB channel upstream
         a large amount of capital from VTBF.

   * Russian Commercial Bank (Cyprus):

         Foreign currency IDR 'BBB', Short-term foreign currency
         'F3' and Support '2'.  The Outlook on the bank's IDR is
         Stable mirroring that assigned to VTB's IDR.  RCBC's
         Individual rating of 'D/E' is affirmed and withdrawn.
         
         RCBC's ratings reflect the high probability of support
         being forthcoming from its 100% shareholder, VTB, in
         case of need.  Under the terms of RCBC's banking
         license granted by the Cypriot authorities, its
         obligations are guaranteed by VTB in the case of RCBC
         being wound up.  However, in light of possible
         timeliness issues relating to enforcement of the
         guarantee, and also its cross-border nature, Fitch
         maintains a one-notch differential between the ratings
         of VTB and RCBC.  The withdrawal of RCBC's Individual
         rating reflects the extent of integration between RCBC
         and its parent, which makes an analysis of RCBC on a
         standalone basis difficult.  Fitch is informed that
         RCBC will remain a direct subsidiary of VTB for the
         foreseeable future, notwithstanding the ongoing
         restructuring of VTB's western European subsidiaries.

Founded in 1990, VTB is Russia's second-largest bank by assets
and equity.  Historically a corporate bank, it is also
aggressively expanding its domestic small and mid-sized
enterprise and retail banking operations.  VTB's strategy is to
become a mid-sized European bank.  Following a number of
acquisitions, VTB group comprises three major Russian banks,
seven banks in Western Europe, including VTBE and VTBF (both
acquired at end-2005) and RCBC, and four banks in CIS countries.  
It also has offices in Africa and plans to open new offices in
Asia.


* Fitch Says European Car Makers Better Positioned than US Peers
----------------------------------------------------------------
Fitch Ratings says European manufacturers enjoy stronger credit
profiles and higher ratings than their U.S. counterparts but
remains concerned that the downtrend in the U.S. may be
replicated in Europe.

Although the outlook for the auto industry is stable in Europe,
this stability is fragile.  The main common themes and
differences between the western European and U.S. automotive
industries are reviewed in a special report issued this week.

"Many of the issues faced by U.S. manufacturers are not present
in Europe, or at least not to the same extent," says Emmanuel
Bulle, Director in Fitch's European Industrials team.  "Not only
do the European and U.S. markets differ structurally but
European manufacturers have also reacted more quickly than their
U.S. counterparts to increasing industry challenges,
implementing the necessary restructuring measures."

The first structural difference is that Western Europe is a
highly fragmented market, whereas U.S. brands still account for
the majority of sales in their domestic market.  As a result,
European original equipment manufacturers have had to adapt
their marketing, sales and industrial strategies to a multi-
player environment.  European manufacturers serve various
countries with different cycles, helping to mitigate the auto
industry cyclicality, while U.S. groups will immediately suffer
from a sales slump in their national market.  Ford, GM and to a
lesser extent DaimlerChrysler's Chrysler, are also heavily
burdened by legacy issues.  Healthcare and pension liabilities
put the U.S. groups at a significant disadvantage to foreign
competitors.  This situation has been aggravated by the
deteriorating relationship between the U.S. Big Three and their
suppliers.  In contrast, European OEMs globally enjoy better
relations with their suppliers and benefit from lower stress in
the global supply chain.

Fitch notes that some of the issues facing U.S. and European
OEMs, including aggressive and increasing competition from Asian
brands, and the need to cut costs and delocalize production,
were first present in the US.  European manufacturers were
therefore able to see the extent of the challenge and react
accordingly.

As a result of these historical, structural and strategic
differences, European manufacturers are now better positioned
than their U.S. counterparts, with stronger cash generation and
higher operating margins.  Nevertheless, Fitch views that the
weakening of the U.S. auto industry is a strong indication that
continuous efforts are needed in Europe.  Fierce competition,
high raw material prices, unfavorable foreign exchange rates and
European regulations remain challenges.  In particular, Fitch
expects competition from Asian players to continue unabated.  
The offensive by Japanese and Korean brands may have started in
the U.S. but is becoming protracted in WE.  The deterioration in
the Big Six's market shares in Europe since the end of import
quotas in 2001 demonstrates the pressure being put on domestic
players by Asian manufacturers.  Fitch expects Asian brands to
accelerate their market share growth as they develop diesel
technology and as consumer acceptance of Asian brands increases.

Fitch will comment further on the outlook for the European auto
industry in January 2007.

                           *********

Each Tuesday edition of the TCR contains a list of companies
with insolvent balance sheets whose shares trade higher than
US$3 per share in public markets.  At first glance, this list
may look like the definitive compilation of stocks that are
ideal to sell short.  Don't be fooled.  Assets, for example,
reported at historical cost net of depreciation may understate
the true value of a firm's assets.  A company may establish
reserves on its balance sheet for liabilities that may never
materialize.  The prices at which equity securities trade in
public market are determined by more than a balance sheet
solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Jazel Laureno, Julybien Atadero, Carmel Zamesa
Paderog, Joy Agravante, and Zora Jayda Zerrudo Sala, Editors.

Copyright 2006.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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                 * * * End of Transmission * * *